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ESOP

ESOP

1 7.3
A plan that lets employees own shares in the company they work for
  • noun
  • /ˈiːsɒp/
  • Specialized
translation icon : ESOP
  • Putting labor and management on the same side, say, in an ESOP, sounds good on paper.
  • ESOP (Employee Stock Ownership Plan)
  • ESOP (Employee Stock Ownership)
  • ESOP plan

Examples

  • ESOPs can be a great approach for many business owners to have a controlled exit from their business.

    Blog text (13)
  • The ESOP approach encourages individuals to invest only in the firm that employs them.

    Academic text (1996)
  • The ESOP is often a second retirement plan that can help employees build savings for their future.

    Blog text (13)
  • The ESOP lets a business owner exit on their terms.

    Blog text (13)
  • She works for an ESOP company and they just recently got bought out by another company.

  • Similarly, they could use a partial ESOP to generate liquidity to finance retirement needs.

    Blog text (13)
  • Peter Kiewit, the original owner, set up an Employee Stock Ownership Plan (ESOP) to run the paper after his death.

    Blog text (23)
  • The companies typically share ownership and profits with employees through ESOPs (Employee Stock Ownership Plans) and other approaches, and engage in purposeful activities in order to enhance the well-being of other stakeholders and the environment.

    Academic text (2016)
  • A quarter of them offered ESOPs. Comparing ESOP-participating firms with conventional firms, on average, ESOP companies experienced higher five-year profit growth, higher net profit margins, higher productivity, higher return on average total equity, and a higher return on capital.

    Academic text (1996)
  • The employees voted to implement an ESOP so they could share in the company's profits and have a stake in its future.

Synonyms

employee stock ownership plan
vsESOP
  • Specialized
1 4.3

A program that lets employees buy or get shares in their company to become part owners

is the same concept but usually referred to by a short abbreviation

Surface Forms

ESOP singular
ESOPs plural

Etymology

The word ESOP comes from the first letters of Employee, Stock, Ownership, and Plan. It literally names a 'plan' that gives 'employees' company 'stock' so they can 'own' part of the business, which is why an ESOP is a program for workers to earn shares and sometimes take control of the company.