CoolIT Employees Get a Slice of the Pie
Imagine learning at a company meeting that a sale will earn you years of extra pay. At CoolIT Systems, employee ownership meant everyone, from engineers to factory workers, shared the reward.
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When employees at CoolIT Systems gathered for a companywide meeting, they expected good news. What they heard instead would change their lives. After private equity firm KKR announced the $4.75 billion sale of CoolIT, a liquid cooling technology company for data centers, to Ecolab, workers learned they would receive payouts ranging from 1 to 8 years of their annual salary.
This outcome was the result of an employee ownership program that gave equity to all workers, not just executives. At CoolIT, everyone from engineers to assembly-line workers had a financial stake in the company’s success. When the company performed well, employees benefited directly.
CoolIT’s Growth
Originally a small company focused on cooling gaming computers, CoolIT shifted toward liquid cooling systems for data centers. This aligned with the rise of artificial intelligence (AI), which requires powerful hardware that generates large amounts of heat.
Under KKR’s ownership, CoolIT expanded rapidly. Revenue increased roughly four times, and the workforce doubled to around 650 employees. The company also scaled its production capacity dramatically to meet demand from large cloud-service providers. This growth helped increase the company’s value from about $270 million in 2023 to $4.75 billion at the time of sale in 2026.
Understanding Employee Ownership
Employee ownership means workers receive equity in the company, often in the form of stock or stock-like benefits. At CoolIT, the ownership plan did not replace wages or benefits but added an opportunity for employees to build wealth.
When the company was sold, payouts were determined using a formula based on salary and years of service. Newer employees received smaller multiples of their pay, while long-tenured workers earned significantly larger payouts. Programs like this are becoming more common in private equity-backed companies. KKR has implemented similar plans across dozens of businesses, covering nearly 200,000 workers.
Employee ownership can influence how people approach their work. When workers have a financial stake in outcomes, they may feel more connected to the company’s success. This can lead to higher engagement, lower turnover, and improved productivity. At CoolIT, employees reported feeling more motivated to improve processes and maintain quality. Research from KKR’s program suggests that companies with employee ownership see lower quit rates and stronger workplace culture. Employees are more likely to stay with the company and contribute ideas when they feel valued and included.
Beyond CoolIT
Historically, most equity-based rewards have gone to executives and top managers. Employee ownership programs aim to expand access to wealth-building opportunities. Advocates argue that ownership can help address income inequality by giving workers a share in the value they help create. While these programs are still relatively rare in public companies, organizations are working to expand their adoption.
CoolIT’s story demonstrates that employee ownership can produce real financial outcomes for workers while also driving company performance. As more companies explore this model, it may become an increasingly important part of how businesses operate in the 21st century.
In the Classroom
This article can be used to discuss motivation (Chapter 9: Motivating the Workforce) and financial compensation of the workforce (Chapter 10: Managing Human Resources).
Discussion Questions
- In what ways can employee ownership influence workplace behavior and performance?
- At CoolIT, payouts were calculated using a formula based on salary and years of service. What are the strengths and weaknesses of distributing equity this way, and how else might a company structure payouts?
- What are the potential advantages and challenges of expanding employee ownership programs to more companies?
This article was developed with the support of Kelsey Reddick for and under the direction of O.C. Ferrell, Linda Ferrell, and Geoff Hirt.
Lauren Thomas, "KKR to Make 15 Times Its Investment With Sale of Data-Center Cooling Business," The Wall Street Journal, March 25, 2026
Murad Hemmadi, "CoolIT staff earn payout from US$4.75B sale to Ecolab," The Logic, March 26, 2026
Shawn Tully, "Some cried. Others were speechless. How frontline workers walked away with checks averaging $240,000, nearly equal Wall Street bonuses, when KKR sold their company," Fortune, March 29, 2026
Linda Ferrell is the Roth Family Professor of Marketing and Business Ethics in the Raymond J. Harbert College of Business, Auburn University. She was formerly Distinguished Professor of Leadership and Business Ethics at Belmont University. She completed her Ph.D. in business administration, with a concentration in management, at the University of Memphis. She has taught at the University of Tampa, Colorado State University, University of Northern Colorado, University of Memphis, University of Wyoming, and the University of New Mexico. She has also team-taught classes at Thammasat University in Bangkok, Thailand.
