Employee Stock Ownership Plan
/ˌɛm.plɔɪˈi ˌstɑk ˌoʊn.ɚˈʃɪp plæn/
Definitions
- (n.) A retirement plan that provides employees with an ownership interest in the company through acquiring stock, often funded by company contributions.
The company’s employee stock ownership plan gave workers a stake in corporate profits.
Forms
- employee stock ownership plan
- employee stock ownership plans
Related terms
See also
Commentary
Often abbreviated as ESOP, this plan serves both as a retirement benefit and an employee incentive, requiring careful valuation and compliance with ERISA regulations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.