Employee Stock Ownership
Plan - an Employee stock ownership plan is a trust by a corporation
to its employees. It is a plan to make the employees part owners of
the company by allowing them to purchase shares of the company.
Contributions are made by the employee to the company. It is tax -deferred
but unlike other 401 Ks and retirement plans, the contributions must
be for the company's stock only, thus making them partial owners The
company receives more cash flow, tax savings, and more motivated
employees since they are part owners, and most likely will be more willing
to be profitable. The employees get to share in the company's
success, by being a contributor.