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Employee Stock Ownership Plan |
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Description of Employee Stock Ownership Plan. Explanation. |
Definition Employee Stock Ownership Plan. Description.
Employee Stock Ownership Plan is an organized plan for employees or managers to buy shares of their company's stock at a discount or attractive other terms. Usually it is a tax efficient way to provide this motivational benefit. It is a method allowing employees to participate financially in their own organization by becoming shareholders.
The money to pay for the stock is normally withheld from the employee's salary. Compare: Employee Benefits.
Also referred to as Stock Purchase Plan.
Compare with: Employee Stock Options | Phantom Stock Plan | Golden Handcuff | Golden Hello | Golden Parachute | Golden Handshake | Stock Dividend | Warrant | Unissued Stock | Treasury Stock | Incentives |
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End of description Employee Stock Ownership Plan. An explanation. |
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