Over nearly 15 years of working with our portfolio companies to build ownership cultures, one of the lessons we have learned is the importance of making the concept of ownership real to our portfolio company colleagues. Only 62% of Americans own stock1, and for many participating in our companies’ broad-based ownership programs, this may be their first experience with equity ownership.
Making ownership real can happen in a number of different ways. We encourage our portfolio companies to host regular owners’ meetings, for example, in which employees come together to get an update on the company’s performance and strategize how to achieve their goals. Another way to make ownership real is through early distributions to shareholders, in cases where the growth strategy and strong performance of the business makes this possible.
In its first year as a KKR portfolio company, CIRCOR has performed exceptionally well—thanks in large part to the hard work of its approximately 3,100 employee owners across the world. In October 2024, the CIRCOR team gathered in-person at its sites in Monroe, North Carolina and Radolfzell, Germany for an all-owners meeting, where the company’s first shareholder distribution was announced. This announcement was virtually broadcast to 25+ other CIRCOR sites globally. Watch the CIRCOR event highlights here:
KKR has supported the implementation of broad-based employee ownership programs throughout its portfolio based on the belief that this type of engagement and alignment can drive results in business while creating greater financial inclusion. Since 2011, more than 55 KKR portfolio companies have awarded billions of dollars of total equity value to over 120,000 non-senior management employees.
KKR is also a founding partner of the cross-sector initiative Ownership Works, a nonprofit on a mission to increase prosperity by developing and implementing broad-based employee ownership programs.
1 Gallup’s annual Economy and Personal Finance survey, April 2024
