An employee stock ownership plan exchanges part of an employee's base wage for part ownership in a company.

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An employee stock ownership plan (ESOP) is a retirement plan that allows employees to become partial owners of the company they work for. As part of the plan, a portion of an employee's base wage is set aside to purchase company stock on their behalf. This gives employees a vested interest in the success of the company and can serve as a valuable incentive to improve productivity and loyalty.

An Employee Stock Ownership Plan Exchanges Part of an Employee's