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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

In fact, everyone in Lexington had enrolled in the SRC Holdings employee stock ownership plan, or ESOP, by February 1.

From New York Times ● Jul. 26, 2010

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