Employee Stock Ownership Plan - ESOP
- Employee Stock Ownership Plan - ESOP
- A qualified, defined contribution, employee benefit (ERISA) plan designed to invest primarily in the stock of the sponsoring employer. ESOPs are "qualified" in the sense that the ESOP's sponsoring company, the selling shareholder and participants receive various tax benefits. ESOPs are often used as a corporate finance strategy and are also used to align the interests of a company's employees with those of the company's shareholders.
Employee stock ownership plans can be used to keep plan participants focused on company performance and share price appreciation. By giving plan participants an interest in seeing that the company's stock performs well, these plans are believed to encourage participants to do what's best for shareholders, since the participants themselves are shareholders.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
employee stock ownership plan — n: esop Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. employee stock ownership plan … Law dictionary
employee stock ownership plan — ( ESOP) A company contributes to a trust fund that buys stock on behalf of employees. Bloomberg Financial Dictionary * * * Employee Stock Ownership Plan Employee Stock Ownership Plan ➔ ESOP * * * employee stock ownership plan UK US noun [C] (UK… … Financial and business terms
Employee stock ownership plan (ESOP) — A company contributes to a trust fund that buys stock on behalf of employees. The New York Times Financial Glossary … Financial and business terms
employee stock ownership plan — noun a program under which employees regularly accumulate shares and may ultimately assume control of the company • Syn: ↑ESOP • Hypernyms: ↑stock purchase plan … Useful english dictionary
Employee Stock Ownership Plan — (ESOP) A type of qualified profit sharing plan that invests in securities of the employer. Such plans acquire shares of the employer corporation for the benefit of employees usually through contributions of the employer to the plan. In a… … Black's law dictionary
Employee Stock Ownership Plan — (ESOP) A type of qualified profit sharing plan that invests in securities of the employer. Such plans acquire shares of the employer corporation for the benefit of employees usually through contributions of the employer to the plan. In a… … Black's law dictionary
Employee Stock Ownership Plan — (ESOP) A company program fostering employee purchases of stock. ESOPs have sometimes been used by management to divest a company of unwanted divisions, selling them to the employees, using their retirement funds … American business jargon
employee share ownership plan — ESOP A method of providing the employees of a company with shares in the company. The ESOP buys shares in its sponsoring company, usually with assistance from the company concerned. The shares are ultimately made available to employees, usually… … Accounting dictionary
employee share ownership plan — ESOP A method of providing the employees of a company with shares in the company. The ESOP buys shares in its sponsoring company, usually with assistance from the company concerned. The shares are ultimately made available to employees, usually… … Big dictionary of business and management
stock purchase plan — noun an organized plan for employees of a company to buy shares of its stock • Hypernyms: ↑plan, ↑program, ↑programme • Hyponyms: ↑employee stock ownership plan, ↑ESOP … Useful english dictionary
