Definition
Employee stock option plan (ESOP) is the program that gives employees the right to purchase company stock at a set price. It shows up in the paperwork: ownership, rights, and what happens when things change. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
You know Employee stock option plan (ESOP) is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Program that gives employees the right to purchase company stock at a set price.
Common mistake
Using Employee stock option plan (ESOP) as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Employee
Person who works for a company in exchange for wages or salary.
Read definition →
Employee benefits
Non-wage compensation provided to employees, such as health insurance and retirement plans.
Read definition →
Employee stock options
Right given to employees to buy company stock at a predetermined price.
Read definition →
Employee stock ownership plan (ESOP)
Retirement plan that invests primarily in the employer's stock.
Read definition →
Research more
Open the word in an AI tool with a ready prompt. We do not send your data.
Get one word every week
A 3-minute read: 1 word, 1 founder lesson, 1 tool.