Employee Stock Ownership Plan (ESOP): What It Is, How It Works, and Advantages
Employee Stock Ownership Plan (ESOP): What It Is, How It Works, …
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What is Employee Stock Ownership Plan (ESOP)? ✓ An employee stock ownership plan (ESOP) is an employee benefit plan that provides workers with a means to acquire ownership interest in the company through the issuance of shares of stock. ✓ This serves to incentivize employees to perform at their best, as the company's success directly translates into financial rewards. ✓ Additionally, such plans serve to enhance employee satisfaction and a sense of appropriate compensation for the work performed.
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