ESOP

[ee-sop]

noun

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

Word History and Origins

Origin of ESOP¹

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

Example Sentences

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.

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The St. Louis County Police Association said Friday that it “shares many of the substantial concerns raised by ESOP.”

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In a statement, Barton said department leaders have been in discussions with ESOP, the St. Louis County Police Association, and the police department’s diversity and inclusion staff.

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In their case, Cimarron was bought by another ESOP, called Folience, which made the transaction quicker.

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In an ESOP, shares of the firm are put in a trust, which works like a retirement plan for the workers.

Read more on Salon