“Naked In, Naked Out:” How Our Ownership Model Actually Works

When I tell people Ocaquatics is 100% employee-owned, the first question is always: "So did your employees have to buy in?"

No. That's the whole point.

We use a model called an Employee Ownership Trust. And the principle was first explained to me simply by my advisor as “naked in, naked out.”

Employees come in with nothing. They don't buy shares. They don't invest their savings. They show up, they do the work, and after 2,500 hours, they become a co-owner. Period.

And if a team member leaves, they don't take shares with them either. The ownership stays in the trust, protected for the next generation of team members.

Why did I choose this over an ESOP? A few reasons.

First, an ESOP is essentially a retirement plan. The wealth is locked up until someone leaves. I wanted my team to feel ownership now. Profit sharing happens every year. The impact is immediate.

Second, ESOPs create a legal obligation that if someone comes along and makes a big enough offer, you might be forced to consider a sale. That terrified me. I didn't spend 30 years building a mission-driven company just to have it sold to the highest bidder.

Third, the EOT model is more affordable for a company our size. We didn't need to hire a team of lawyers and financial advisors to set it up. It was simpler, more flexible, and more aligned with our values.

And here's the kicker: our trust includes a provision that if the company is ever sold, 75% of the proceeds go to nonprofits. That's permanent. Nobody can change it. It ensures that Ocaquatics will always be a force for good, whether I'm running it or not.

There's no perfect ownership model for everyone. But if you want your people to feel like owners right now, not in 30 years when they retire, the EOT is worth looking into.