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ESOP

American  
[ee-sop] / ˈi sɒp /

noun

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


Etymology

Origin of ESOP

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

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

See Examples For:

In the 2010s, the company settled two separate class-action lawsuits with former employees, for a total of more than $45 million, who alleged they’d been prevented from benefiting fully from the ESOP.

From The Wall Street Journal Jul. 31, 2026

Stockwell, who now works part-time for Stockwell Elastomerics, opted for a slightly different method of transferring ownership to the staff – an Employee Stock Ownership Plan or ESOP.

From BBC Jun. 14, 2026

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

As an employee stock ownership company, or ESOP, Recology avoids most corporate income taxes.

From New York Times Jun. 10, 2011

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