What is an Employee Stock Ownership Plan (ESOP)?
This is the plan where employees own a substantial part or the entire company.
What does it mean to be employee owned?
Being employee owned means that the employees have a stake in the company. The success of the company is tied directly to employee goals and accountabilities.
What are the objectives of an ESOP?
Most stock plans have one or a combination of the following as objectives:
- Employee commitment and a feeling of ownership
- Creating additional wealth for employees
- To supplement retirement / social security benefits
- To attract talented / highly valued professionals
- To retain employees or specific skill groups