Employee Share Ownership Trust - ESOT

Employee Share Ownership Trust - ESOT
A program that facilitates the acquisition and distribution of a company's shares to its employees.

ESOTs are trust accounts with which a company can sell its shares to employees. Some reasons to provide the ESOT include the following:

1. The ability for company to test out how an employee share ownership plan would work
2. The creation of a mini market for the transference of company's stock, which allows the company to obtain funds efficiently and educate their employees in share ownership
3. The provision of a tax incentive to shareholders should they decide to sell their shares in the company to the company's ESOT


Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • employee share ownership trust — (ESOT) A term used to describe an employee benefit trust. Related links employee share ownership plan (ESOP) Practical Law Dictionary. Glossary of UK, US an …   Law dictionary

  • employee share ownership trust — ESOT A trust set up by a UK company, under the provisions introduced in 1989, to acquire shares in the company and distribute them to the employees. The company s payments to the trust are tax deductible. The trust deed sets out the specified… …   Big dictionary of business and management

  • employee share ownership trust — ESOT A trust set up by a UK company, under the provisions introduced in 1989, to acquire shares in the company and distribute them to the employees. The company s payments to the trust are tax deductible. The trust deed sets out the specified… …   Accounting dictionary

  • employee share ownership plan — (ESOP) A discretionary trust, normally for the benefit of employees, ex employees and dependants. Used to supply shares on the exercise of share options as an alternative to issuing new shares. Also used in conjunction with long term incentive… …   Law dictionary

  • Employee Share Owner Trusts — Employee share ownership plans (ESOT s) are based on an Employee Benefits Trust (EBT). They are established by a company, the beneficiaries being directors and employees of the company. The ESOP is used a vehicle for acquiring and storing shares… …   Law dictionary

  • ESOT — Employee share ownership Trusts (ESOT s) are based on an Employee Benefits Trust (EBT). They are established by a company, the beneficiaries being directors and employees of the company. The ESOP is used a vehicle for acquiring and storing shares …   Law dictionary

  • employee benefit trust — Employee share ownership Trusts (ESOT s) are based on an Employee Benefits Trust (EBT). They are established by a company, the beneficiaries being directors and employees of the company. The ESOP is used a vehicle for acquiring and storing shares …   Law dictionary

  • ESOT — Abbreviation for employee share ownership trust …   Accounting dictionary

  • ESOT — Abbreviation for employee share ownership trust …   Big dictionary of business and management

  • ESOP — /ˌē ˌes ˌō pē/ n [e mployee s tock o wnership p lan]: a program by which a corporation s employees may acquire its capital stock Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. ESOP …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”