ESOP

American  

[ee-sop] / ˈi sɒp /

noun

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

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Etymology

Origin of ESOP

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.

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

Charter Construction joined the ranks of more than 100 companies in Washington that give employees an ownership stake with an ESOP.

From Seattle Times • Jan. 21, 2017

In 1989, Parksite’s original owners — Ray Biggins and John Morrisroe – sold 75% of the company to an ESOP, later selling the remaining 25%.

From Forbes • Feb. 18, 2015

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