ESOP

American  

[ee-sop] / ˈi sɒp /

noun

1. a plan under which a company's capital stock is acquired by its employees or workers.

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Etymology

Origin of ESOP

1970–75; e(mployee) s(tock) o(wnership) p(lan)

Example Sentences

The deal hinged on the creation of an employee stock ownership plan, or ESOP, a structure that would allow Tribune to avoid most federal income taxes.

From Los Angeles Times • May 18, 2023

In an ESOP, shares of the firm are put in a trust, which works like a retirement plan for the workers.

From Salon • Nov. 20, 2019

Saladino was vacationing in Montana when a ski partner talked about an employee stock-ownership plan, or ESOP, that turned workers into owners.

From Seattle Times • Jan. 21, 2017

All of this can make acquired operations more valuable when brought under the ownership and culture of an ESOP.

From Forbes • Feb. 18, 2015

He used debt in combination with an employee stock ownership plan, called an ESOP, to buy the company, while contributing only $315 million of his own money.

From New York Times • Oct. 6, 2010