Leveraged Employee Stock Ownership Plan (LESOP)

Categories: Retirement and Pension, Stocks,

An employee stock ownership, profit-sharing, or pension plan financed by borrowed money. This allows a company to tie employees' benefits to the performance of the company, as well as ensure that ownership and control remains with people who have a vested interest in the company's long-term viability. Loans are paid down over time through annual contributions made by the company.