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 ☺️
In: 7
IMO it exposes you to the risk of one company succeeding or failing. I prefer more diversification in retirement planning.
I worked for a publicly traded company with an ESOP. They purchased quarterly on the same day and the price spiked the day they purchased for the ESOP and sank back the next.
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