Employees' Stock Ownership Plan (ESOP)

An Employee Stock Ownership Plan (ESOP) is a benefit program that gives employees ownership interest in their company through shares of stock. It aligns employees' interests with the company's success, motivating performance and loyalty. Typically, the company contributes shares or money to buy shares for employees, which are held in a trust until they leave or retire. ESOPs can boost employee engagement, provide a valuable retirement asset, and foster a sense of shared purpose within the company. They are regulated by laws to ensure fair management and benefit distribution.