“EOTs are a great option for companies that are too small for an ESOP. They are a flexible and dynamic way to engage and reward employees,” says Broughton. The ShopBot EOT creates an Employee Governance Committee to help structure employee voice and engagement. Unlike in an employee stock ownership plan (ESOP), the most common form of employee ownership in the U.S., employees do not receive individual equity in the company as part of a retirement program. Employees participate in the financial benefit of ownership by regularly receiving a payout of a portion of the company’s operational earnings, much like a dividend. Attorney Bill Kaluza of Fahrenheit Advisors also played a key role in structuring the transaction.Īn EOT is a trust that holds the stock of a company as a group, not as individuals. He ultimately decided on an EOT with help of consultant Anne-Claire Broughton, Principal of Broughton Consulting and founder of the North Carolina Employee Ownership Center (NCEOC), and Chris Michael of EOT Advisors, who has been instrumental in bringing EOTs to the U.S. Wanting the company to thrive for the long term, Hall began exploring employee ownership options. Hall founded ShopBot 25 years ago and has grown the company to 35 employees. Hall designed his own CNC tool and began spending more time designing tools than building boats. “The EOT is a vehicle to keep ShopBot thriving, innovating, and active in the community while rewarding the people who have built it over the years including recognizing shareholders’ investment,” says Hall.Ī professor of neuroscience at Duke University, Hall built plywood boats in his spare time, but he was frustrated by the amount of time it was taking to cut the panels with hand power tools. to establish an EOT, a relatively new form of employee ownership in the U.S. Founder and board chair Ted Hall says the move is designed to position the company for long-term success by empowering employees and providing liquidity for shareholders. For as little as $5,000-compared to $100,000 or more for a pro-level CNC router-the ShopBot is within reach for enthusiasts and maker spaces around the world.ShopBot Tools, a producer of computer numeric controlled (CNC) machines, restructures as an employee ownership trust (EOT). They've helped make digital technology available and affordable for individual makers and small and midsize manufacturers. ShopBot Tools has been building CNC routers for 20 years and is a leader in bringing digital fabrication to a larger audience. Uses include interior and exterior decorations, sign boards, wood frames, toys, and moldings, as well as larger objects like furniture, boats, and even houses.

Router bits of various shapes and sizes are used for achieving different cutting results.ĬNC routers can be used to cut wood, foam, and plastics, but most hobbyists use it for carving wood. CNC stands for computer numerical control and a CNC router only functions when it's hooked up to a computer loaded with software to direct the tool path of the machine. A power tool router is affixed to the machine that directs its X and Y coordinates as it's cutting. A CNC router is a computer-controlled cutting machine.

Shotbot tools