Employee Stock Accumulation Plan

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Description

In the U.S.:

"A term used to describe a employee benefit plan that enables workers to accumulate shares in their employer company, but which withholds the rights of first-class shareholders over those shares, particularly the right to vote one's own shares on standard shareholder issues or to elect a representative to the board of directors. Except on certain major corporate issues, ESOPs today are permitted by law to withhold pass-through of the vote on shares held by the ESOP for employee-owners. In practice today, most ESOPs operate as ESAPs. Capital Homesteading policies would offer credit and tax incentives to encourage companies with ESOPs to pass through full ownership rights to their worker-shareholders." (http://www.cesj.org/definitions/glossary.html)


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