HR Glossary
ESOP (Employee Stock Ownership Plan)
A benefit plan giving employees ownership interest in the company through stock or stock options.
Definition
An ESOP grants employees equity or options to purchase equity in the company they work for, usually vesting over a defined period, aligning employee incentives with long-term company performance.
Why It Matters
ESOP grants and vesting schedules need to be tracked carefully alongside standard compensation and payroll records.