European ESOP – Pilot Programme in Slovenia

The Generic and Democratic Employee Share Ownership Plan (ESOP) for Europe (henceforth referred to as G&D ESOP) is a leveraged buyout scheme that provides employees with the capital necessary to buy the company in which they work. Besides facilitating the transition to employee ownership, the scheme also puts into place an efficient system of incentives and ensures that the company is democratically governed once it becomes employee owned. The scheme addresses the problem of succession, it tackles wealth inequality at its root and anchors business ownership in local communities.

Small businesses and local companies in Slovenia face an uncertain future with rising wealth inequality. These businesses also lack potential successors, but most people in Slovenia do not have the financial resources to purchase property or own a business. As a result, small businesses and local companies risk bankruptcy or buyouts by business and real estate monopolies.

The European ESOP – Slovenia Pilot Programme democratises property and business ownership by enabling employees to become owners of the companies they work for. The programme secures employees’ jobs and reduces wealth inequality, while workers contribute and have a say in important decision-making about their company as business owners.

We work with business owners and employees interested in adopting the model, as well as political parties and unions. The programme provides legal assistance with ownership transfers to employees. We also conduct training sessions to give employees the technical, organisational, and cultural skills to navigate the company’s ownership and governance structures. 

Our programme empowers workers by granting them capital income in addition to their wages. This system helps build social and economic equity while decreasing the risk of inflation and financial insecurity. We also build trust within firms and improve company performance. Most importantly, our programme strengthens Slovenia’s economy and helps retiring business owners preserve their company’s legacies. 

One of the core strengths of the programme is its near-universal adoptability. The legal entity of the CoopESOP – the core of the model – is a cooperative, which is implementable in all countries with legislation for cooperatives. This model is especially significant for countries with transitional economies, where privatisation expropriated social wealth and led to political disempowerment.