CEO Empathy Gyms at KKR: A Conversation with Pete Stavros 

by | Mar 19, 2025

A year ago, I stumbled upon a video on YouTube that changed how I think about employee ownership. It wasn’t just another corporate success story—it was a moment of pure, raw emotion. Workers in a factory, some of whom had spent decades on the frontlines of their company, learned that their commitment had translated into real financial rewards. I saw men and women break into tears, hug each other, and celebrate a payout that, for many, would change their lives forever.

At the heart of this moment was Pete Stavros, the Co-head of Global Private Equity at KKR and the chairman and founder of the nonprofit Ownership Works. His mission? To create a world where employees don’t just work for a company—they own a piece of it. I had to know more. So, I went to KKR, sat down with Pete, and asked him the tough questions about employee ownership, CEO accountability, and—most intriguingly—the role of empathy in leadership. Why Employee Ownership Works—And Why It Fails Ownership is powerful. It creates a sense of responsibility, accountability, and motivation that no engagement survey or team-building exercise can replicate. But it doesn’t work everywhere. One of the most insightful moments in our conversation was Pete’s admission that employee ownership programs sometimes fail. Why? Because leadership matters. KKR has rolled out ownership models in over 60 companies. In many, quit rates have dropped dramatically, engagement scores have skyrocketed, and financial performance has improved. But others had less success. The program was the same, the financial structure was identical, but the culture remained stagnant. The differentiator was leadership empathy. Some CEOs see employee ownership as another HR initiative to check off the list. Others embrace it as a fundamental shift in how they run their business. The companies that succeed have leaders who build transparency, engage employees in financial education, and commit to long-term cultural transformation. The ones that fail are often led by executives who don’t fundamentally believe in ownership as a mindset—just a financial transaction. The Gamechanger: Empathy We talk a lot about employee engagement, but Pete is taking it a step further. He’s tackling a fundamental issue at the root of workplace culture: empathy. Pete told me about something he’s spearheading at KKR called Empathy Gyms—a concept designed to train CEOs to become more empathetic leaders. Yes, you can train empathy. Research proves it’s a variable trait, something that can be improved, like a muscle. But the first step? Leaders have to believe it’s possible. If a CEO thinks empathy is fixed—“you either have it or you don’t”—they won’t develop it. If they believe it’s a skill that can be learned, they can change how they lead, and by extension, transform their culture. At these Empathy Gyms, CEOs in KKR’s portfolio companies step into the shoes of their frontline workers. They go through real-world financial challenges—applying for a payday loan, navigating healthcare costs, or budgeting on an hourly wage. It’s a wake-up call for many leaders who have never experienced the daily financial anxiety their employees face. One of the most powerful moments in our discussion came when Pete talked about capitalism itself. “The problem with our system,” he said, “is that all the rewards are piled up in the bank accounts of relatively few people.” Employee ownership strikes at the Achilles’ heel of capitalism—unequal wealth distribution. And yet, it’s a solution that resonates across the political spectrum. Conservatives see it as a way to reward hard work without government intervention. Employee ownership was written about positively in Project 2025 as a possible gamechanger. Progressives view it as a tool to address income inequality. Tim Walz is a long time advocate of employee ownership. It’s one of those rare ideas that isn’t just ideologically compelling—it works. KKR isn’t just experimenting with ownership. They’re proving it at scale. Every two weeks, they roll out a new employee ownership program. And on the flip side, they get to exit a company where thousands of workers receive life-changing payouts. Pete believes that when enough data accumulates, when the case studies stack up, this won’t be a niche initiative—it will be the standard. I got to work with one of KKR’s portfolio companies on how to create a culture of accountability and the energy was electric. I could feel the difference. The Future of Work: Ownership, Empathy, and Adaptability If there’s one takeaway from my conversation with Pete, it’s that the future of work isn’t just about perks, hybrid policies, or AI automation. It’s about fundamental shifts in how we think about employment. Ownership is one shift. Empathy is another. Adaptability—the ability to navigate constant change—is a third. Pete and I both believe that the companies that survive and thrive in the next decade will be the ones that integrate all three. I walked away from this interview feeling more hopeful about the future of work than I have in a long time. If we can get more leaders into Empathy Gyms, if we can push for broader employee ownership, and if we can create cultures that don’t just demand accountability but enable it—then we’re on the right track. If you’re a leader, this is your moment. If you care about building a company that lasts, that thrives, that people actually want to work for—listen to this episode, share it, and start thinking about what ownership could look like in your organization. Because as Pete Stavros is proving, culture means results. And ownership changes everything. Elsewhere In Culture 
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During my recent appearance on NewsNation, I discussed the alarming rise in burnout among American workers and the underlying cause—the “action trap.” Too many employees and leaders believe that working harder and pushing more will yield better results, but in reality, this approach leads to exhaustion and diminishing returns. The issue isn’t just about being overworked or lacking resources; it’s about mindset. When organizations focus solely on action without aligning beliefs and purpose, employees feel stuck, micromanaged, and ultimately disengaged. This pattern isn’t new, but the intensity of burnout is increasing as companies fail to recognize that sustainable success comes from a shift in culture, not just effort. One of the most striking points in our conversation was the growing fear among younger employees about AI replacing their jobs. Fear-driven narratives dominate the headlines, making people feel powerless. But the solution isn’t resistance—it’s adaptation. I emphasized that employees need to stop fighting reality and instead focus on what they can control. Upskilling, exploring new career paths, and shifting beliefs about their own capabilities are key steps toward overcoming this anxiety. Organizations, too, must cultivate a culture that fosters growth rather than fear. By shifting from action for action’s sake to intentional, belief-driven action, both individuals and companies can unlock new levels of performance and resilience. https://www.forbes.com/sites/bryanrobinson/2025/02/08/job-burnout-at-66-in-2025-new-study-shows Burnout isn’t just rising—it’s at an all-time high, with 66% of American workers feeling the strain. This new data underscores what I discussed on NewsNation: we are collectively stuck in the “action trap,” believing that working harder is the only way to achieve better results. But instead of unlocking potential, this mindset leads to exhaustion and disengagement. The report highlights that younger employees are experiencing burnout at alarming rates, with over 80% of workers under 35 feeling overwhelmed. The added stress of return-to-office mandates and fears of AI displacement are exacerbating the issue, pushing employees to their limits. Yet, despite these challenges, many workplace training programs are failing to provide real solutions, often making things worse rather than better.

The conversation needs to shift from reactive policies to proactive cultural change. Organizations have a unique opportunity to move beyond outdated compliance-driven training and rethink how they engage employees in meaningful development. Burnout is not just about workload—it’s about whether employees feel valued, supported, and empowered to grow. Encouraging true flexibility, redefining productivity beyond visibility, and fostering an environment where employees can thrive is what will drive real results. Leaders who continue to ignore these signs risk more than just high turnover; they risk a disengaged workforce that has quietly quit long before they walk out the door.