Employee Stock Ownership Plan - ESOP
Employee stock ownership plans can be used to keep plan participants focused on company performance and share price appreciation. By giving plan participants an interest in seeing that the company's stock performs well, these plans are believed to encourage participants to do what's best for shareholders, since the participants themselves are shareholders.
Investment dictionary. Academic. 2012.
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Leveraged Employee Stock Ownership Plan - LESOP — An equity compensation system in which the sponsoring company typically leverages its credit to borrow money, which it then uses to fund the plan, in order to purchase company shares from the company s treasury. The shares are used for the… … Investment dictionary
employee share ownership plan — UK US noun [C] UK (US employee stock ownership plan) FINANCE, HR ► a benefits plan in which employees own a percentage of their company’s shares, which are bought and managed for them by a trust (= separate organization): »An employee share… … Financial and business terms
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Employee Share Ownership Trust - ESOT — A program that facilitates the acquisition and distribution of a company s shares to its employees. ESOTs are trust accounts with which a company can sell its shares to employees. Some reasons to provide the ESOT include the following: 1. The… … Investment dictionary
stock option — Fin [m1]1. see option 2. see employee stock ownership plan … The ultimate business dictionary
Stock Appreciation Right — Stock appreciation rights (SARs) is a method for companies to give their management or employees a bonus if the company performs well financially. Such a method is called a plan . Stock appreciation rights (SARs) and phantom stock are very… … Wikipedia
share incentive plan — HR a type of financial incentive plan in which employees can acquire shares in the company in which they work and so have an interest in its financial performance. A share incentive scheme is a type of employee stock ownership plan, in which… … The ultimate business dictionary
defined contribution plan — n: a pension plan in which the amount of the contributions made by the employer is fixed in advance and earnings are distributed proportionately Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. defined contribution plan … Law dictionary
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Phantom Stock Plan — An employee benefit plan that gives selected employees (senior management) many of the benefits of stock ownership without actually giving them any company stock. Sometimes referred to as shadow stock. Rather than getting physical stock, the… … Investment dictionary
Phantom Stock — is a method for companies to give their management or employees a bonus if the company performs well financially. Phantom stock provides a cash or stock bonus based on the value of a stated number of shares, to be paid out at the end of a… … Wikipedia