What does ESOP mean? Read on to discover the definition & meaning of the term ESOP - to help you better understand the language used in insurance policies.
An employee stock ownership plan (ESOP) allows employees to acquire the stock of the company employing them. The company allocates the stocks among the employees according to a criteria (such as seniority or salary). Once employees resign or retire, employees sell their stocks to the company at fair market value.
We hope the you have a better understanding of the meaning of ESOP.