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ESOP
(Employee Stock Ownership Plan)
An ESOP (Employee Stock Ownership Plan) is a retirement benefit plan that invests primarily in the employer's stock, giving workers ownership stakes. There are ~6,500 ESOPs in the U.S. covering 14 million employees, with average balances of $134,000.
ESOPs provide tax advantages - companies deduct contributions, and employees pay no tax until distribution. Studies show ESOP companies grow 2.5x faster and have 25% lower turnover. Unlike 401ks, ESOPs don't require employee contributions. However, concentration risk exists (see Enron). The National Center for Employee Ownership estimates ESOP participants have 2.2x the retirement assets of non-ESOP employees.
ESOPs provide tax advantages - companies deduct contributions, and employees pay no tax until distribution. Studies show ESOP companies grow 2.5x faster and have 25% lower turnover. Unlike 401ks, ESOPs don't require employee contributions. However, concentration risk exists (see Enron). The National Center for Employee Ownership estimates ESOP participants have 2.2x the retirement assets of non-ESOP employees.