🎉 EO Day 2025: Celebrating Progress, Confronting Barriers

Happy EO Day 2025! 🎉

Today, we celebrate alongside thousands of employee-owned businesses across the UK as the employee ownership movement reaches new heights. Since 2014, Employee Ownership Trusts (EOTs) have quietly revolutionized business succession, becoming the dominant model for ownership transitions with success stories multiplying from Glasgow to Guildford.

Yet beneath today's celebrations lies a critical reality check.

New HMRC research confirms what many suspected: most business owners still discover EOTs by accident - stumbling across them through LinkedIn posts or casual conversations rather than structured guidance. Meanwhile, despite EO's proven benefits as an exit strategy and tool for business resilience, the sector continues to face a fundamental constraint: lack of institutional capital.

Here at EO Sector, our goal is to help systematically close the awareness gap, build discovery infrastructure, and spotlight the breakthroughs that could transform what's possible. Like this week's game-changing announcement from Valloop and Guy Carpenter.

The movement has momentum. Now it needs intentional scaling.

The Discovery Problem: Why EOTs Remain the "Best Kept Secret"

New HMRC research reveals most business owners learn about EOTs informally, despite their proven benefits. The sector has a discovery problem - and solving it is key to unlocking scale. Despite being available since 2014 and demonstrating clear success, business owners are still finding EOTs through chance encounters rather than strategic planning.

The implications are staggering: if successful EOT companies are only discovered accidentally, thousands of suitable businesses remain completely unaware of this exit option.

What needs to happen: Structured discovery platforms become essential infrastructure.

The research proves EOTs work brilliantly when implemented properly. The challenge isn't proving effectiveness—it's ensuring business owners know they exist.

👉 Read the full analysis of HMRC's findings: EOTs Gaining Ground, But Awareness Gap Requires Urgent Action

🚀 £40bn Capital Injection: The Institutional Breakthrough EO Has Been Waiting For

For years, we've known employee ownership delivers better performance, higher engagement, and more resilient businesses. The missing piece? ACCESS TO CAPITAL.

Is this the breakthrough employee ownership has been waiting for?

Employee ownership platform Valloop and Guy Carpenter, the risk and reinsurance specialist subsidiary of Marsh McLennan, have unveiled a landmark initiative to inject £39bn in surety-backed institutional capital into EO buyouts. This isn't just new funding—it's a blueprint for mainstream adoption.

The partnership unlocks up to £39 billion in surety-backed capital from a consortium of reinsurers.

Discover why £40 bn in institutional capital may just change the game for employee ownership

📣 John Lewis Bonus Campaign: What It Reveals About EO's Emotional Infrastructure

Staff are calling for the return of the bonus that once symbolized shared success. What does this reveal about the emotional and cultural levers needed to sustain EO?

Nearly 4,000 current and former John Lewis employees have signed a petition demanding the return of staff bonuses after three years without them. Despite a 73% rise in pre-tax profit (£97 million), leadership chose to prioritize reinvestment over bonuses.

Why this matters beyond John Lewis: The bonus wasn't just compensation—it was a cultural touchstone. As one employee wrote:

Recent HMRC research into EOTs confirms that the £3,600 tax-free annual bonus significantly impacts employee engagement, serving as a visible, practical way to reinforce employee-centric values.

The lesson: Employee ownership isn't self-sustaining. Without ongoing investment in recognition, transparency, and shared rewards, even iconic EO businesses can find themselves at odds with their founding principles.

👉 See what this tells us about employee engagement

Employee-Owned, One Year In: What actually changed at Cofficient – and what didn't

Twelve months after becoming employee-owned, this Glasgow-based firm reflects on mindset shifts, unexpected recruitment wins, and what really changes post-transition.

Key insight: The legal framework enables change, but real transformation happens gradually as people adjust to thinking like owners.

👉 Read the honest lessons from the front line

Building Trust Through Representation: Lessons from PTS's First Employee Trustee

From accessibility to anonymous feedback channels, one trustee shares what she's learned about building trust and driving meaningful change.

Erabnaa Kingsley-Nyinah, PTS's first Employee Trustee, offers practical insights from her inaugural year that can benefit trustees across the EO sector.

Most significant observation: Conversations are becoming "more forward-thinking and less about individuals—they're often about us as co-owners." This evolution from individual concerns to collective ownership thinking represents the deeper cultural transformation EOTs can achieve.

👉 Learn how to amplify employee voice effectively

Transitions

Growing Community: New EO Adopters Across Industries

Masonry specialist and BFY Group join the expanding community of employee-owned businesses.

The EO community continues expanding across diverse sectors:

Construction sector: Masonry specialist adopts employee ownership model

Professional services: BFY Group becomes employee-owned consulting business

These transitions demonstrate EO's versatility across industries and business models.

Finally, let’s talk about Kevin….

😲 CORPORATE HALL OF SHAME: RECOGNITION RIDICULOUSNESS 😲

Today, we’re starting a "Corporate Hall of Shame" series. Kevin's sausage roll story here is just the beginning  👇

This went viral and we can't stop thinking about it:

Kevin worked 40 years at the same supermarket.

• 14,600 days of loyalty

• 116,800 hours of service

• Millions in revenue generated

His reward? 40 sausage rolls. One per year of his service.

As one commenter put it:
“You helped me sell 400,000 sausages over 40 years and I earned millions. Here's your share of 40 sausages.” 💀

Kevin didn’t need pastry. He deserved ownership. This is why the EO movement matters.

👉 Read Kevin’s story and share your thoughts

You know it’s #TimeForEO when….

EO Day reminds us not just of how far we've come - but how far we still need to go.

The sector has proven its effectiveness. EO success stories show sustainable transformation is possible. Initiatives like Valloop's demonstrate institutional capital is finally recognizing EO's potential. Research confirms the benefits are real and measurable.

But celebration alone won't scale the movement.

The sector needs:

• Visibility to move beyond accidental discovery

• Capital to compete with traditional exit options

• Infrastructure for intentional discovery and deeper insight

• Platforms that connect awareness with action

This is what we're building at EO Sector - not just information, but systematic pathways from curiosity to implementation.

We are looking forward to collaborating with the community working together to move employee ownership from promise to scale.

➡️ If something in today’s issue resonated with you, why not share it with a colleague? Your engagement helps our community grow stronger.

P.S. For more EO updates between newsletters, be sure to check out EOSector.com.