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ESOP
hisham's writing pad/ESOP
EMPLOYEE STOCK OWNERSHIP
TYPES of Employee Share
Ownership
 Permanent employees are
entitled to be part of a share
ownership plan (ESOP)
 Employees are entitled to
receive benefits on retirement
 Company contributes shares
to the plan, or contributes
cash to the fund to buy the
stock, or lets the fund borrow
money to buy shares and
company repays the loan
Benefits
 Draws greater commitment
towards the progress of the
company
 Improves employee
satisfaction and motivation
 Enables capital growth owing
to long term nature
 Enhances savings as opposed
to consumption
hisham's writing pad/ESOP

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ESOP

  • 2. EMPLOYEE STOCK OWNERSHIP TYPES of Employee Share Ownership  Permanent employees are entitled to be part of a share ownership plan (ESOP)  Employees are entitled to receive benefits on retirement  Company contributes shares to the plan, or contributes cash to the fund to buy the stock, or lets the fund borrow money to buy shares and company repays the loan Benefits  Draws greater commitment towards the progress of the company  Improves employee satisfaction and motivation  Enables capital growth owing to long term nature  Enhances savings as opposed to consumption hisham's writing pad/ESOP