2023 Exploring Employee Ownership in Succession Planning
Employee ownership is proven to build a more inclusive and resilient economy. Right now, Canada is missing the policies that make it viable.
Employee ownership trusts are a proven policy in countries like the US and UK that offers retiring business owners a clear path to sell to their employees. With 76% of Canadian business owners planning to retire in the next decade, enabling employee ownership today is an urgent priority.
Canada can benefit from the biggest transition of business assets in national history, with employee ownership proving to create more wealth for workers, make companies more resilient, and keep jobs in local communities.
Employee ownership is proven to create a stronger, more inclusive economy. The key to unlocking the potential of employee ownership is the employee ownership trust.
In its 2023 Budget, the Canadian government committed to creating an Employee Ownership Trust (EOT) by January 2024 and published draft legislation for comment.
However, the government's draft legislation lacks several of the key ingredients that have made employee ownership so successful in other countries like the US and the UK. Without meaningful reforms, domestic and international experts agree that almost no one will consider using the proposed trust.
There is still time to get this policy right. We can fix this with simple, smart, and proven public policy.
Join one of Canada's leading proponents for employee ownership, London's own Geoff Smith of EllisDon for a deep dive into how we can make this happen.