Employee Share Ownership Plan (ESOP)

What is an ESOP?

An ESOP is a structured plan that lets employees own shares in the company, often with vesting schedules and other conditions.

Think of it like this…

It’s a formal way to turn employees into co-owners.

Why does it matter?

  • Aligns employee and company goals
  • Helps attract and retain talent
  • Can have tax implications for the company and employees

Best practice

Define clear rules, eligibility, and how shares will be valued or sold.

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