In an era where companies grapple with attracting and retaining talent, Chroma Technology has built a workplace model that many organisations aspire to but few achieve. The Vermont-based manufacturer of precision optical filters is not only a global leader in its field, but also a pioneer in redefining what it means to be both successful and equitable.
At Chroma, every employee is also an owner – and that makes all the difference.
Electro Optics spoke to Nicholas Day, Engineering Manager; Jennifer Lee, Director of Marketing; and Sarah Sanctuary, HR Generalist from Human Resources, about what makes Chroma a great place to work. Ask almost anyone this about their employment, and the answer is almost always consistent: the people, but there’s a difference at Chroma.
“Everyone gets shares here,” explains Day. “The company was founded by six people, and when they went to hire the seventh person, they decided they didn’t want just an employee – they wanted another co-owner. So, they established that shares are distributed freely and evenly among emplyees annually. The company purchases the shares on behalf of employees – they don’t have to buy in themselves. This is quite different from most employee-owned companies where people either need to buy in or receive different amounts based on stock option incentives.”
This has helped create a culture built on sincerity, collaboration, and a shared sense of responsibility. Colleagues support one another both at work and in the community, creating an environment where kindness is the norm and success is collective. Unlike traditional corporations where decision-making is concentrated at the top, Chroma’s 100% employee-owned and governed model ensures that business choices benefit both the organisation and the people that power it. That sense of ownership instills pride and accountability, but also fosters something harder to quantify: a genuine feeling of family. “At Chroma, you don’t just work with colleagues – you work with co-owners who want you to succeed,” says Lee.
Ownership that empowers
“On our share distribution day, we had a barbecue, and an ice cream food truck, and everyone got their share certificates along with some Chroma swag,” says Day. “We’re trying to make it more of a celebration now. We even have special branded binders for people to keep their share certificates in!”
The number of shares distributed is decided in board meetings, which are open to all employees, so there’s complete transparency in the process. Governance of the company, which was launched in 1991, is equally distinctive: the Board is composed entirely of elected employee-owners alongside the CEO and one of the founders. This structure – intentionally designed by Chroma’s founders – ensures that power remains with those who actively contribute. By relinquishing personal wealth and control, the founders empowered employees to shape the future of the company. The results have been profound: financial security, genuine accountability, and a workplace where every employee literally owns a piece of the success they help create.
“Our board meetings are open to all,” says Day, who has served on it. “There are closed sessions for privacy and confidentiality reasons, but the main meetings are open. Our board of directors is made up entirely of current employee-owners, elected by the employee-owners. The only people making decisions about what happens at the company are ourselves – your co-workers. Sometimes it takes new employees a while to realise that the person making board decisions is the same person working right next to them. You voted them onto the board, and you can vote them off. The ultimate power rests with the employee body.”
The benefits are impressive too:
- Cash profit sharing (with the same dollar amount going to all)
- Stock profit sharing (same share to all)
- 401k contributions (same % of total to all, with no matching needed)
- Generous paid time off, including two weeks of flexible sick/personal time
- Very generous healthcare, with very low copays and premiums (to help control costs, Chroma Technology is self-insured for the first several tens of thousands of dollars of costs)
- Employee Assistance Plan (EAP)
- Business travel accident and assistance plan
- Education assistance
- Professional memberships assistance
- An onsite nurse, onsite chiropractor, onsite massage, health coaching services, and wellness benefits
- Sabbatical leave, parental leave, and other leaves of absence
- Relocation assistance
- Flu shots
- Paid volunteer time and matching donation ($5/hr of employee service donated to the organisation)
- Financial advisor services
Employees expand their skills through education assistance, conferences, and industry memberships. Internal mobility is common, with team members advancing into new roles thanks to both formal learning and peer mentorship. Collaboration and mastery are part of everyday life, with coworkers teaching and supporting each other.
Values that guide daily work
Chroma’s core values – employee ownership; equity; lasting relationships (where enduring relationships with its customers and employees, based on respect, honesty, and fulfilling its commitments by providing exceptional customer service, delivering products of the highest quality, and investing in itself, are valued); community, and mastery, are not abstract ideals. They shape daily experiences and long-term career development. “The core values weren’t set up by the founders 30 years ago – they’re relatively recent,” says Day.
“We started with company-wide surveys and conversations because people talked a lot about ‘Chroma culture’ but it wasn’t documented. We gathered broad feedback on what people thought defined our culture, then the board of directors worked with executives and HR to distill this down. We also worked with the original founders to ensure alignment with what they were trying to create.”
Sanctuary explains that this diligence of approach follows through into the assessment of how they are working. “Those values are not something we rate people on in performance reviews – they’re lived out naturally,” she says. “However, they do come up in board meetings as guideposts for tough decisions. Having them stated and agreed upon gives us something concrete to refer to rather than just saying something is ‘against Chroma values’.”
The company’s commitment to the community is equally strong. Internally, social events and celebrations build connections. Externally, Chroma actively supports Vermont communities through charitable donations, volunteerism, and direct response in times of crisis. When recent flooding left residents stranded, Chroma opened its facility as a safe refuge – demonstrating that its values extend beyond the factory floor.
Chroma’s values are reinforced by its Certified B Corporation status, a designation reserved for businesses meeting the highest standards of social and environmental performance. For Chroma, certification is not a marketing badge but a framework for accountability. It sets clear expectations that the company will operate as a better business – not just a profitable one. The certification process has also broadened Chroma’s perspective, identifying new ways to improve and ensuring the company continues to balance purpose and profit.
Recruitment and the ‘Chroma Person’
Hiring at Chroma is as intentional as its governance. Employee-owner teams participate directly in recruitment, ensuring that new hires are not only technically capable but also aligned with Chroma’s values. A ‘Chroma person’ may be new to employee ownership, but they must naturally embody qualities of fairness, collaboration, and community. Once hired, employees are then supported through cross-department tours, job shadowing, and professional development – fostering strong relationships and broad understanding. “In truth, we don’t track KPIs for issues such as retention because it’s never really been an issue,” says Sanctuary.
“Of our 173 employees, 65 have been here over 10 years and 23 over 20 years. We recently had a group of retirees, and one benefit of being employee-owned is that people can sometimes retire early if they want to, while others choose to stay longer because they love it.
“A ‘Chroma person’ is someone who demonstrates through their past actions that they share our core values,” says Day. “Our interview process focuses on what people have actually done, not hypothetical ‘what would you do’ questions.
“We look for that alignment with core values. Many people who we interview don’t know what employee ownership is, but if they show dedication and commitment in how they have approached past responsibilities, it’s easier to see them as a future fellow employee-owner.”
“We need people who are self-driven, because we have a lot of autonomy here,” says Lee. “We also look for people who demonstrate responsibility and a degree of entrepreneurialism – we don’t want people just fulfilling tasks without engagement.”
Shared recognition, and a demonstrable sense of shared pride
For Chroma’s employee-owners, industry recognition carries deep meaning. Being honoured as a global leader in precision optical filters validates the technical excellence and dedication of the entire workforce. Partnerships, such as with the Photonics100, which celebrates innovators in the field, reinforce Chroma’s reputation for innovation while highlighting the talent within its own teams.
Chroma’s ownership model creates a workplace dynamic distinct from most organisations. Decision-making often requires balancing personal and company-wide interests, encouraging a culture of responsibility and long-term thinking.
While shared ownership might sometimes lead to caution, Chroma counters this with entrepreneurial agility and a structure that rewards both prudence and progress. The impact is visible: high retention, deep engagement, and a workforce motivated by both financial and cultural rewards.
At its core, Chroma is more than a manufacturer of world-class optical filters. It is a living example of how employee ownership, equitable practices, and strong values can redefine corporate success. For employees, it means financial security, professional growth, and the pride of working for a company that reflects their values. For customers and communities, it means trusted relationships, social impact, and uncompromising quality.
In a business landscape often dominated by short-term gains and shareholder primacy, Chroma offers a truly different path – one where purpose and profit move in lockstep, and where ownership is not a privilege for the few but a shared responsibility for the many.
www.chroma.com
