: a program by which a corporation's employees acquire its stock

Examples of ESOP in a Sentence

Recent Examples on the Web In 2017, the company sold itself to its employees, through a financial transaction known as an ESOP (Employee Stock Ownership Plan). Emma Goldberg, New York Times, 10 Feb. 2024 The company has 19,000 employees and about 23% of the company is owned by full-time employees in an ESOP. Maria Halkias, Dallas News, 28 June 2023 An owner can enjoy several tax advantages when employing an ESOP, including postponing or avoiding capital gains tax on the sale of stock, reducing or eliminating the corporate income tax and using cash dividends paid on ESOP stock as a tax deduction. Gerry Spitzer, Forbes, 20 Apr. 2023 Razorpay is spending $75 million on its biggest employee stock ownership plan (ESOP) buyback yet. Ananya Bhattacharya, Quartz, 12 May 2022

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'ESOP.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History


employee stock ownership plan

First Known Use

1973, in the meaning defined above

Time Traveler
The first known use of ESOP was in 1973

Dictionary Entries Near ESOP

Cite this Entry

“ESOP.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/ESOP. Accessed 14 Jun. 2024.

Legal Definition

: a program by which a corporation's employees may acquire its capital stock

employee stock ownership plan

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!