Employee Stock Ownership Plan (ESOP)

Employee Stock Ownership Plan (ESOP)
An Employee Stock Ownership Plan (ESOP) is a program that encourages employees to purchase stock in their company, thus allowing them to participate in the management of the company. Companies with such plans may take tax deductions for ESOP dividends passed on to participating employees and for dividends that go to repay stock acquisition loans.

Accounting Terms Lexicon

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