What Happens When Workers Own the Shop? Lessons from Clegg Auto’s Bold Move

In April 2025, the Aspen Institute published a case study that deserves your attention. It tells the story of Clegg Auto — a Utah-based chain of repair shops founded by brothers Kevin and Steve Clegg back in 1998 — and how it became employee-owned through an Employee Ownership Trust (EOT).

But this isn’t just a story about corporate structure. It’s a lesson in alignment.

When the incentives of owners and workers are aligned, better outcomes follow. For people. For business. For the community.

Let’s break down what Clegg Auto did — and what we can all learn from it.

Ownership Isn’t Just Financial — It’s Cultural

Kevin Clegg didn’t just want an exit plan. He wanted a future where employees were not just workers, but stewards of the company. So he helped convert the business into an EOT — a trust that owns the company for the benefit of its employees.

Unlike traditional employee stock plans (ESOPs), an EOT is designed for permanence. It legally locks in employee benefit and company independence. This matters. It ensures that the company can’t be sold off to the highest bidder and gutted later.

Principle: If you want people to act like owners, make them owners — and design systems that protect that ownership.

Alignment Changes Behavior

In the first year after the transition, Clegg Auto shared $475,000 in profits with 55 employees. But profit-sharing was only the start.

The company practices open-book management, holds weekly employee feedback sessions, and runs workshops with titles like “Own My Life” and “Own My Company.” The message is clear: you’re not just clocking in. You’re building something — for yourself, for your team, for your future.

Principle: People rise to the level of responsibility they’re given — especially when they can see how their effort drives results.

Design for Stewardship, Not Just Efficiency

Clegg Auto didn’t eliminate managers or flatten the structure. Instead, it added layers of meaning. Employees now help make decisions — from equipment purchases to charitable donations. They understand the numbers, track performance, and are encouraged to lead.

They also wrote into the trust a commitment to give 10% of profits to charity — with local employees deciding where half of that money goes. Ownership is more than an economic transaction. It’s an ethical commitment.

Principle: People don’t just want more money. They want more meaning.

Small Companies Can Do Big Things

Too often, conversations about “business transformation” center on tech giants or startups. Clegg Auto is a small repair shop with four locations and about 60 employees. And yet, it’s pioneering a model that could reshape how we think about business succession, labor relations, and community impact.

Their success shows that employee ownership isn't just for idealists or billion-dollar companies. It's a viable, sustainable model — especially when designed with intention.

Principle: Start small, but build with scale in mind. A strong idea doesn't need a big company — just the right structure.

Final Thought

The Aspen Institute’s case study of Clegg Auto isn’t just a feel-good story. It’s a real-world example of what happens when people design systems that reflect shared purpose.

When ownership is distributed, responsibility rises. When incentives are aligned, performance follows. When people are trusted, they grow.

If you found this story useful…

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