An Employee Stock Ownership Plan (ESOP) is a program that provides a company's workforce with an ownership interest in the company. Through this plan, employees can acquire shares of the company's stock, often at no upfront cost. ESOPs are designed to align the interests of employees and shareholders, encouraging workers to contribute to the company's success. ESOPs can serve as a retirement benefit, allowing employees to build wealth over time as the company's value increases. They are also used as a tool for business succession, enabling owners to sell their shares to employees while maintaining the company's operations and culture.