An employee share ownership scheme colloquially known as ESOP refers to a scheme/arrangement by a company to afford its senior employees an opportunity to own shares and participate in the ownership and decision-making in the company.
Usually, ESOPs allow employees to acquire shares at a discounted price or at a fixed price over a duration of time. It is notable that such a scheme has been known to foster employee loyalty and investment in the performance and profitability of the business of the company.
