What Is ESOP Employee Stock Ownership Plan Explained

Employee Stock Ownership Plans (ESOP) have become popular recently due
to the various benefits they provide the company and the employees. It is a
well-known fact that we tend to care about the things we own and providing
employee stock options in the company makes your employee feel a sense of
ownership in your company.
Hence, many companies have started providing ESOP to their employees in a
bid to retain talented employees to gather more interest in their work and the
overall company’s success. It helps in garnering long-term interest, thereby
reducing employee turnover.
It also provides them with an investment option and motivates them to work
harder. The company redistributes shares in addition to the employee
compensation package which employees receive, creating a win-win
environment.