Law Dictionary

To search for a particular term please use the following search box.

employee stock option plan (ESOP)

an employee benefit in which employees, as part of their compensation, are given equity shares (stock) in their company. The purchase of such stock is normally funded by a loan. The stock is transferred initially to a trust and the loan is paid off from dividends on the stock and contributions from the employing company.

Source : U.S. Department of the Treasury

Language : English

Return

Return to Law Dictionary Index