The Irish ProShare Association (IPSA) today briefed members of the Oireachtas on the urgent need for legislation to incentivise Employee Ownership Trusts (EOTs) in Ireland.
At a well-attended session in Leinster House, TDs and Senators from across the political spectrum heard how incentivising employee ownership of Irish businesses through the use of EOTs can provide indigenous SMEs with a fair, practical succession option while increasing job security and contributing to a fairer, more productive and resilient economy.
Members of the IPSA EOT Working Group – Marie Flynn, Chair of IPSA; Alan Coleman, CEO of Wolfgang Digital; and Graeme Nuttall OBE, former UK Government Employee Ownership Adviser – led the discussion and took questions from Oireachtas members.
EOTs, which allow employees to buy and own the company they work for through a trust structure, are already a proven model internationally. More than 1,800 UK firms have transitioned to employee ownership since 2014, with more than 10companies a week now making the move. IPSA is pressing for similar reforms here, beginning with the removal of current tax barriers and adoption of recommendations from the 2024 Indecon Review commissioned by the Department of Finance.
The IPSA group outlined their two-stage plan to remove tax obstacles currently preventing Irish SMEs from adopting the EOT model:
- Immediate removal of existing tax barriers to level the playing field with other succession options.
- Adoption of incentives to promote adoption of EOTs such as the recommendations of the 2024 Indecon Review to align Irish EOT taxation with the UK model.
Similar models to UK EOT system exist in other countries, including Denmark, Slovenia, USA, Canada, and Australia.IPSA is calling for reforms to be included in Budget 2026 to level the playing field for employee ownership in Ireland.
Strong Engagement
Marie Flynn, Chair of IPSA, said: “Today’s strong engagement from across the Oireachtas shows there is a real appetite to make employee ownership part of Ireland’s economic story. EOTs offer huge benefits – for business owners, employees, and the wider economy – and we are encouraged by the positive response we received today.”
Graeme Nuttall OBE, former UK Government Employee Ownership Adviser, said: “The reception at Leinster House today mirrors the excitement we saw in the UK when EOTs were introduced. Ireland has a clear opportunity to replicate that success and create a thriving employee ownership sector.”
Alan Coleman, CEO of Wolfgang Digital, said: “Wolfgang Digital became the first Irish company to adopt an EOT, even though it was far more expensive than a trade sale because of tax treatment here. We did it to prove the benefits: higher productivity, stronger innovation, more jobs, and more inclusive growth. We know the model works – but it’s currently too expensive here. It was heartening to see TDs and Senators recognise the potential of EOTs today. With legislative support, thousands of Irish employees could become owners of the companies they help to build.”
‘Clear Benefits’
George Lawlor TD (pictured), Labour Spokesperson on Enterprise, Tourism and Employment, said: “Today’s briefing to members of the Dáil and Seanad gave an insight into the benefits for business owners and SMEs of moving to an Employee Ownership Trust model. It provides a new option for business succession instead of selling to private equity or multinationals, and shows clear benefits for workers through profit sharing, improved productivity and retention.
“Our mission is to now convince the Government to back the development of EOTs in Ireland. We already have one example in Ireland through Wolfgang Digital, and I look forward to working with today’s presenters to deliver a more supportive policy and tax framework. The upcoming Budget is an ideal opportunity to achieve that and give owners certainty on Revenue guidance and the taxation rules that apply if they opt to place their business into an EOT.”
Senator Conor Murphy (pictured), Sinn Féin, said: “This was a very worthwhile briefing for TDs and Senators on the Employee Ownership Trust. It outlined the obstacles faced by businesses trying to adopt the employee ownership model. As Economy Minister in the North I championed Employee Ownership as a practical and innovative way to secure the long-term future of businesses and their workers. I hope all parties in the Oireachtas join together to encourage Ministers to ensure this is a viable option for businesses in the South.”
Main image (l-r): Wolfgang Digital CEO and founder Alan Coleman, IPSA Chair Marie Flynn, and former UK Government Employee Ownership Adviser Graeme Nuttall outside Leinster House.
