In today’s competitive economic landscape, young people often encounter challenges in securing stable employment, achieving professional satisfaction, and meeting financial goals. This highlights the growing importance of socio-economic security in the labor market, alongside the need for inclusive and sustainable economic models that promote fairness and broader participation.
INEA is a company established in 1987 by the Jožef Stefan Institute’s Nuclear Engineering Division and based in Ljubljana, Slovenia. It has delivered over 3,000 global projects in industrial automation, digitalization, and energy management. As a trusted partner for AVEVA, Siemens, Rockwell Automation, 3DS, and others, INEA empowers customers to enhance productivity and drive sustainable growth.
The company has also been committed to innovation, supported by its philosophy of complete employee ownership.
The IT Logs team had the chance to discuss the Employee Stock Ownership Plan (ESOP) transition with the INEA team, one of the few examples of such a model in Slovenia.
IT Logs: What was the primary motivation for implementing the ESOP model in your company?
INEA: Inea’s journey began in 1987 as an employee-owned company, and that sense of ownership and pride has been a core part of our identity ever since. Over the years, as the original owners were retiring, the percentage of employee ownership gradually decreased. This naturally meant that the interests of the internal and external owners slowly drifted apart.
However, we saw an exciting opportunity to realign the interests of all stakeholders—especially the employees—with the long-term vision of the company. About six years ago, we initiated conversations with our owners and management to craft a more sustainable ownership structure and make transitions smoother.
Recognizing the potential of our younger, ambitious team members—who often lack the initial capital to invest—we saw the need to create a pathway that would allow them to share in the future success of the company they help shape. This was a truly empowering vision, one that has now become a reality.
When did you begin the ESOP implementation process, and how long will the process take?
Our ESOP journey began in 2018, when we first started exploring the idea, even though the concept was still relatively unknown at the time. We went through several phases of refining our approach, and by 2021, we had solidified the vision and agreed on the cooperative model. In 2022, the cooperative was officially formed, and last year, the first shares were purchased. This process has been an exciting evolution, and we’re just getting started.
What has been the most significant challenge encountered during the ESOP implementation process?
The most significant challenge was finding a balanced approach with the retiring owners, which required some thoughtful negotiation. Once that was sorted, we had to navigate through the complexities of securing financing and working with legal and financial authorities. The ESOP concept was quite new to Slovenia and the only applicable laws were from 1991, so we encountered some initial resistance. But with determination, we were able to prove the sustainability and potential of the model. Though rare, it’s quickly gaining momentum and is set to become an increasingly popular model for companies that value employee ownership.
Has the company experienced increased profitability since the transition to employee ownership compared to the previous ownership structure?
Absolutely! The shift has brought a remarkable boost in employee engagement, productivity, and efficiency, and the first two years after the transition were record-breaking for us. While we’ve faced some challenges in the cooling automotive industry in 2024, which has impacted the trend, the core values of collaboration, innovation, and cost savings continue to drive us forward. This transformation has truly sparked a renewed sense of purpose and energy within the company.
What advice would you offer to companies considering the implementation of an ESOP model?
If you’re fortunate enough to have the option, I’d advise starting small and allowing time for legislation, tax policies, and banking systems to catch up. Building a culture of employee ownership is an ongoing process—it requires patience, dedication, and a lot of work. Even with a highly skilled and motivated team, the ESOP model is new to many, and it takes time for everyone to fully embrace it. But with the right mindset, the rewards of ownership, empowerment, and shared success are absolutely worth the effort.
