Publications
Publications
- March 2025
- HBS Case Collection
Taylor Guitars: Making Employee Ownership Work The Taylor Way
By: Dennis Campbell, Petros Kusmu and Stacy Straaberg
Abstract
In 2013, guitar manufacturer Taylor Guitars’ co-founders Bob Taylor and Kurt Listug were considering several exit options including selling to a competitor or to a private equity firm. The co-founders decided, instead, to embark on a seven-year process to transfer 100% of the ownership of the company from themselves and third owner partner Andy Powers to Taylor Guitars employees. The co-founders felt an employee stock ownership plan (ESOP) would best preserve the company’s values and distinct culture. In 2024, the co-founders, Powers (now president and CEO), CFO Barbara Wight, and Vice President of Human Resources Shaun Paluczak took time to reflect on the ESOP. Many employees were still unclear about what the ESOP meant for them, with some likening it to a retirement plan. The challenge for the leadership team was how to activate employees’ sense of ownership in the company to enhance Taylor Guitars’ performance.
Keywords
Business Exit or Shutdown; Communication Strategy; Strategy; Announcements; Decisions; Music Entertainment; Values and Beliefs; Borrowing and Debt; Geographic Location; Global Range; Governance; Employee Stock Ownership Plan; Management Style; Organizational Culture; Organizational Structure; Private Ownership; Business Strategy; Management Succession; Manufacturing Industry; Entertainment and Recreation Industry; United States; California; San Diego; Mexico; Netherlands
Citation
Campbell, Dennis, Petros Kusmu, and Stacy Straaberg. "Taylor Guitars: Making Employee Ownership Work The Taylor Way." Harvard Business School Case 125-054, March 2025.