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
My wife worked for an ESOP company for 26 years. When she retired the payout on hers was over a 5 yr period. Each year the payment was based on how well the company was doing that year, either raising or lowering her payout. It was a healthy retirement. I worked for a 401k company for 20 years. Her retirement was 5 times that of mine.
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