Employee Stock Ownership Plan
From P2P Foundation
Description
In the U.S.:
" An expanded ownership mechanism now "qualified" under U.S. retirement law, which can borrow on behalf of employees as a group to acquire equity shares in the employer company repayable with pre-tax profits or dividends. ESOPs today may be either leveraged (designed to borrow to acquire company shares) or unleveraged (contributed by the employer). Typically an ESOP does not require employees to use their own savings or wages to acquire their shares, or to pledge their personal assets as collateral in a leveraged transaction." (http://www.cesj.org/definitions/glossary.html)
