ESOPs

An Employee Stock Ownership Plan (ESOP) is a program that gives employees ownership interests in their company through shares of stock. It aligns employees’ interests with the company's success, motivating them to perform well. The company contributes shares or money to buy shares into an ESOP trust, which allocates stock to employees based on factors like salary or tenure. Employees typically receive their shares or the ability to sell them when they leave or upon retirement. ESOPs can enhance employee engagement, provide financial benefits, and serve as a tool for business succession or growth.