Employee Stock Ownership Plan

 
   

Definition: an Employee Stock Ownership Plan is an organized employee-owner scheme for employees and/or managers to buy shares of their company's stock at a discount or otherwise attractive terms. Usually it is a tax efficient way to provide such motivational benefit. For the organization, an ESOP is a method to achieve employee ownership by allowing employees to participate financially in their own organization by becoming shareholders.
Is also referred to as 'stock purchase plan'.


   

   

More on employee stock ownership plans. More on retention: Employee Loyalty, Employee Retention, Employee Turnover.

   


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