The Cooperative Model

A cooperative is a business that is owned and governed by its members for the benefit of those same members. In a typical worker cooperative, the ownership, governance, and benefits are structured this way:

Ownership

Employees are offered ownership based on specific criteria:

• The number of months or years worked at the business

• The fulfillment of work requirements

• An equity investment

Governance

Board of Directors

• A majority of the members of the Board are employee-owners elected by their peers

• The Board oversees the top manager and makes high-level strategic decisions

Management

• Whatever management structure is typical for the industry

• Managers practice Open Book Management so that the employee-owners understand how they contribute to the profits or losses of the business

Employee-Owners

• At an annual meeting, employee-owners elect representatives to the Board of Directors

• All employee-owners vote to approve major business decisions, such as mergers, acquisitions, expansions, or closures

Benefit

Employee-owners share in the annual profits or losses of the business based on specific criteria:

• The number of hours worked

• And/or tenure and position

Co-op Dayton promotes employee ownership in the Dayton region because of its proven benefits for workers, businesses, and communities.