A retirement plan in which contributions are invested primarily in the employer's stock. The stock is distributed when the employee retires or leaves the company.
An ESOP is a stock bonus plan in which the benefits are shares of stock in the employing company. These plans can be used to transfer ownership of the company to the employees.
(USA) A plan established by a company for the allo... Add a comment
A qualified retirement plan that receives favorable tax treatment under the Internal Revenue Code. The plan trustee must invest contributions primarily in securities of the employer. However, a qualified ESOP can provide an incidental death benefit funded by life insurance.
A defined contribution pension plan that invests primarily in the securities of the employer.
Where by employees are permitted to purchase shares of the company through payroll, usually at a discount to the market.
An employee benefit for them to acquire ownership of shares in their company without necessarily laying out personal capital. In the UK, shares are acquired through an employee benefit trust (EBT) and later distributed through an Inland Revenue approved profit sharing trust (PST). Shares may be given or sold to employees.
A plan in which a company invests contributions primarily in that company's securities.
A type of profit-sharing plan; benefits are in the form of stock in the corporate employer.
a program under which employees regularly accumulate shares and may ultimately assume control of the company
A trust established by a company for the allocation of shares to employees. Usually a tax efficient way to provide this motivational benefit.
An Employee Stock Ownership Plan (ESOP) is essentially a stock bonus plan in which employer stock is used for contributions. A "KSOP" plan also includes §401(k) Plan features. Employer contributions are tax deductible and are not currently taxed to the employee. Earnings accumulate income tax deferred and distributions are generally taxed as ordinary income.
A profit sharing, stock bonus, or money purchase pension plan, the funds of which must be invested primarily in employer company stock. Unlike other plans, an ESOP may borrow from the employer or use the employer's credit to acquire company stock.
or ESOP or Stock Purchase Plan
A qualified, defined-contribution plan in which plan assets are invested primarily or exclusively in the securities of the sponsoring employer.
A plan by which employees systematically buy out present owners of a corporation. Shares thus purchased are held in a trust.
A trust established by a corporation that operates as a tax-qualified defined contribution retirement plan, but unlike traditional defined contribution plans, employer contributions are invested in the company's stock.
This plan primarily is funded by the company's own stock and does not depend on whether the company has made a profit.
a profit sharing, stock bonus or money purchase pension plan in which the planâ€(tm)s assets must be invested primarily in stock of the employer (company stock). An ESOP may borrow from the employer, or use the employerâ€(tm)s credit to acquire company stock (a leveraged ESOP). ERISA 404(c) - a section of ERISA dealing with participant self-direction in a retirement plan. For an employer to qualify for this reduced fiduciary liability, the plan must comply with specific requirements regarding information about investment options, number and type of options, as well as an ability to move balances between those options on a reasonably frequent basis.
a retirement plan that invests primarily in the employerâ€(tm)s stock for the benefit of employees.
A profit-sharing plan where employer contributions are not a function of profits. Contributions are in the form of the employer's common stock.
A qualified defined contribution plan in which the assets are invested mostly in qualifying employer stock.
An employer-provided benefit that allows employees to purchase stock in the company under certain favorable terms.
A plan in which a company contributes to a trust fund that buys stock on behalf of employees.
A Company makes a tax-deductible contribution to a trust fund that buys company stock or ADRs on behalf of their employees, which increases the employees' ownership of their shares.
Generally, any qualified employee-benefit plan, which invests some, or all plan assets in employer stock. In the United States, ERISA further defines an ESOP as either a qualified stock bonus plan or a combination qualified stock bonus plan and defined contribution pension plan designed to invest primarily in employer securities. The employer's contributions are tax deductible for the employer and tax deferred for the employee.
A type of incentive compensation plan under which a company rewards individual or group performance by either allowing employees to purchase company stock or distributing company stock to employees.
A plan that encourages employees to buy the stock of their employer.
A type of profit-sharing plan in which benefits come in the form of stock in the employer.
A qualified retirement plan that invests in the employer's company stock on behalf of employees.
Type of compensation program that allows employees to "own" the company they work for by buying shares in it.
A trust set up by a corporation to allot some of its stock to its employees over time. Used as an employee incentive, the plan often provides tax benefits to the company. Also known as a stock purchase plan.
A trust fund established by a company to purchase stock on behalf of employees.
A popular employee plan that encourages employee ownership and allows employees to become actually involved in their company’s success.
Stock bonus plan of an employer that acquires SECURITIES issued by the plan sponsor.
A program encouraging employees to buy stock in their company and thereby have a greater stake in its financial performance. Abbreviated as ESOP
A plan that encourages employees to purchase stock of their employer. By participating in the plan, employees are able to partake in the company's management.
In the United States: A program to encourage workers to purchase stock of the company, generally tied into the compensation/benefits package. The intention is to give workers a feeling of participation in the management and direction of the company.
A plan whereby employees gain stock ownership in the organization for which they work.