By Jon Shell | Part of our Special Series: The Ownership Solution | This piece first appeared in TheFutureEconomy.ca
Canada is getting used to standing more proudly on its own two feet since our longest-standing ally launched an economic war against us. At this trying moment, Canadians are asking how we protect our sovereignty, make life more affordable for workers and families and build a stronger, more resilient economy for the long term.
One practical answer is already on the books: the Employee Ownership Trust.
Right now is the right moment for Canada to rethink who owns and benefits from our country’s most productive assets. Because if we don’t, we will continue to see viable Canadian companies sold to foreign buyers looking to control our resources—like a conveyor belt moving local success stories out of Canadian hands.
Employee Ownership Trusts, or EOTs, offer a different business succession option that keeps companies rooted in the communities in which they were built. Established in 2024, the EOT allows business owners to sell to a trust that holds shares on behalf of employees. Owners receive full market value paid out of future profits, while workers become employee-owners, without having to invest their own savings.
This model protects Canadian sovereignty by anchoring firms at home. Every EOT sale keeps ownership rooted in Canada, with that firm’s long-term success becoming directly tied to the well-being of its workforce and the community where it operates. It makes life more affordable for workers by helping them build real wealth—in some cases, the first meaningful ownership stake they’ve ever had. And it strengthens the broader economy: research shows employee-owned firms deliver an 8-12% productivity boost, are more likely to survive economic downturns and less likely to lay off workers during recessions.
These outcomes have been proven over decades in the United States and the United Kingdom. Both countries encourage employee ownership with all-party political support and substantial government incentives that spur on their success.
The US now has more than 6,000 employee-owned companies generating over $2 billion in worker wealth, while the UK’s EOT has created new income streams for more than 335,000 workers across nearly 2,500 firms. While it will take some time for Canada to get to that level of adoption, economist Brett House has projected that Canada could eventually see more than 100 new EOTs per year, if the right policy conditions are in place.
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How Employee Ownership Trusts keep wealth in Canada | Canadian Business
The coming wave of business successions will shape Canada’s economy for generations. In Canadian Business, Jon Shell explains how employee ownership safeguards economic sovereignty, while boosting growth, productivity and local wealth, giving employees struggling with affordability a new source of income. As entrepreneurs and owners seek alternatives to selling abroad, the employee ownership trust (EOT) provides a practical answer. Instead of letting the EOT tax incentive expire at the end of 2026, now is the time for the government to double down on employee ownership.
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