LockData Technologies, a Pennsylvania-based software development company, has transitioned to employee ownership through an Employee Ownership Trust (EOT) — a structure that holds shares for the benefit of employees, without requiring them to purchase shares or take on personal financial risk.
Chuck Lockwood founded LockData in 2000, when the Y2K challenge made clear how many organizations needed outside help with systems they couldn’t afford to get wrong. What began as a web development shop is now a full-stack technology partner, building ticketing platforms, custom APIs, enterprise CRMs, and high-performance web applications for Broadway and live event venues around the world.
Much of that work happens behind the curtain, drawing on a long-standing culture that encourages employees to explore new ideas, share their perspectives openly, and understand the financial and operational factors shaping the company.
As Chuck began planning for a future beyond his day-to-day leadership, he wanted to preserve LockData’s independence and the knowledge, relationships, and values that had defined it. Employee ownership offered a way to carry those strengths forward while giving employees a meaningful role in the company’s long-term direction. He also worked directly with members of LockData’s leadership team to prepare them for more responsibility in running the business.
In the software development industry, twenty-six years represents an entire lifetime. Having built a dedicated team supporting dedicated clients, finding an exit strategy that could protect them from external business acquisition pressures while establishing a foundation for sustained growth was vital.
After years of evaluating different succession paths, the EOT model clearly emerged as the ideal solution. Locating guidance to navigate the complex process of establishing an EOT proved challenging—until connecting with an expert team possessing a proven track record of helping owners and employees successfully complete the transition. — Chuck Lockwood, President, LockData Technologies
LockData partnered with Common Trust to design and implement its EOT, reinforcing its culture of employee participation through roles in trust governance and seats on the board of directors. Alongside an updated profit-sharing program, this transition gives employees a clearer financial connection to the company’s performance.
The ownership structure behind the business has changed, but the experience of working with LockData has not. The same team continues developing and supporting critical systems while providing the responsiveness clients rely on.
“The ownership structure is only one piece of a long-term succession plan,” said Zoe Schlag, CEO of Common Trust. “In parallel to designing their EOT, Chuck was intentional about preparing LockData’s leadership team for greater responsibility, so the business was ready for the leadership changes ahead.”
As an employee-owned software company, LockData can continue to evolve on its own terms while employees have a direct stake in its success.
If you’re exploring whether an Employee Ownership Trust could be the right fit for your business, we’d love to talk. Schedule a call with one of our advisors today.
