what is esop?
What is an ESOP? ESOP Definition: âESOPâ is an acronym that stands for Employee Stock Ownership Plan. Technically, the Plan is operated or administered pursuant to a tax-exempt Trust, referred to as ESOT, Employee Stock Ownership Trust. Accordingly, the Plan is alternatively referred to as the ESOP or the ESOT. The purpose of an ESOP is to enable employees to acquire beneficial ownership in their Company without having to invest their own money. The Plan is also a tax-exempt entity for Federal and state corporate income tax purposes.