An ESOP is an employee benefit plan where the employees of the company are owners of stock in that company.
Several features make ESOPs unique as compared to other employee benefit plans.
First, only ESOPs are required by law to invest primarily in the securities of the sponsoring employer. Second, an ESOP is unique among qualified employee benefit plans in its ability to borrow money. ESOP Statistics There are approximately 10,000 ESOPs in the United States with 10 million employee owners.