Curious to know “What is an ESOP?” Watch our animated video for a simple, informative explanation.
An employee stock ownership plan (ESOP) is a unique strategy for business owners seeking liquidity. Using an ESOP strategy allows the business owner to sell a fractional amount or the entire business to the employees. Eligible employees will be allocated common stock over a period of time on a non-discriminatory basis. ESOPs are typically funded and sponsored by the company. In other words, the employees pay nothing for the shares other than time and dedication to the company.