Eli5: What is an ESOP?

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Eli5: What is an ESOP? And what exactly does “vesting” mean? What are the benefits AND consequences to employees with an ESOP benefit?

The company I’m at is introducing ESOP and it’s caused a whirlwind of opinions from coworkers. I tried to google it, but stocks and vesting are the one thing I could never grasp.

Thank you ☺️

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7 Answers

Anonymous 0 Comments

Esops are only good if it’s part of your compensation package and you don’t contribute your money to it. My company gives us 6% of our salary towards the esop yearly plus the leftovers where people not fully vested leave gets split evenly among the other members. It equates to a decent amount of money.

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