5 ESOP Culture Myths: Busted
By: Jennie Msall (Ventura Trust) and Caitlin Muradian (TETER Architects and Engineers)
The original article was posted in the January 2026 edition of the ESOP Report by the ESOP Association. Get the full issue from the ESOP Association website, or continue reading this article here.
Whether you’re newly employee-owned or well into your ESOP journey, there are some persistent myths that can quietly stall your culture-building efforts. Bringing together both the advisory lens and the internal company experience, we’ve seen where these misconceptions tend to surface and how they can be addressed with the right expectations and support.
Here are five common myths we see trip up even the most well-intentioned organizations:
Myth #1: The work ends with the transaction.
Busted: The transaction is only the beginning.
It’s easy to treat the deal close as the finish line. In reality, it’s just the starting point of building an ownership culture. The real work (helping employees understand, engage with, and lean into the idea of ownership) starts after the ink is dry. Culture doesn’t magically arrive with a summary plan description and participant statement.
Myth #2: Your employees will immediately be excited about the ESOP.
Busted: Reactions are mixed and that’s normal.
We often expect employees to feel grateful or energized, but early reactions are often more complicated: confusion, skepticism, even fear. That’s not failure, it’s human nature. Clear, consistent communication and space for questions go much further than one big announcement.
Myth #3: What works in Year One will work every year.
Busted: Your ownership culture efforts need to change as your ESOP matures.
The same playbook won’t work forever. As your employee base shifts, so do the cultural needs of your organization. New hires will come in with no ESOP context. Long-time employees may need re-engagement. Ownership education, communication, and culture strategy must evolve to stay relevant.
Myth #4: You have to figure it all out on your own.
Busted: You’re part of a bigger community.
It’s tempting to try to build everything from scratch, but the ESOP community is full of generous, experienced voices who are willing to share ideas and lessons learned. Lean into your advisors, forums, peer networks, and national resources like The ESOP Association. There’s no need to go at it alone.
Myth #5: Once employees understand how an ESOP works, they’ll think like owners.
Busted: Education is the foundation, not the finish.
Understanding the mechanics of the ESOP is important, but it’s not the same as having an ownership mindset. True ownership thinking requires more than technical knowledge. It needs to be embedded into your company’s culture, language, and everyday decision-making. To shift behavior, companies must intentionally reinforce what ownership looks like in action: accountability, initiative, long-term thinking. That means not just teaching the concept once, but building it into how you talk, lead, recognize, and grow. Reinforcement, storytelling, and modeled behavior over time are what turn understanding into identity.
Final Thoughts
Building an ESOP culture is not about flipping a switch, it’s about lighting a path. With intention, adaptability, and community, you can move past these myths and build something far more lasting: a company where ownership isn’t just a structure, but a shared way of thinking.