Employee Stock Ownership Plan

{
  "id": "MLC-T-ECS-000597",
  "term": "Employee Stock Ownership Plan",
  "field": "Economic statistics",
  "definition": "Defined contribution plan in which the employer contributes to a fund that invests primarily in company stock and makes distributions to employees in stock or cash.\n\nNote: The employer pays a designated amount, often borrowed, into a fund that is then invested, primarily in company stock. Any debt incurred in the purchase of the stock is repaid by the company. Stock is then distributed to employees according to a formula. (ESOPs are available in private industry only.)\n\nSee also company stock plan.",
  "abbreviation": "ESOP",
  "see_also": [
    "Company stock plan"
  ],
  "references": [
    "BLS Glossary"
  ],
  "url": "https://mlchart.com/terminology/economic-statistics/employee-stock-ownership-plan/"
}