ESOP (employee stock ownership plan)
is an employee benefit plan that gives workers ownership interest in the company. Companies often use ESOPs as a corporate-finance strategy to align the interests of their employees
with those of their shareholders
. Employee ownership is a proven model to build healthy companies and workers who are highly satisfied with their jobs. Employees can see a direct link between the work they do every day and the overall health of their company, it provides a powerful incentive for them to do well so the company does well, which then rewards the employee-owner.