An Employee Stock Ownership Plan (ESOP) is a program that provides a company's workforce with an ownership interest in the company. Through ESOPs, employees can acquire shares of the company, often at no upfront cost. This arrangement can motivate employees to work harder, as they directly benefit from the company's success. ESOPs are often used as a corporate finance strategy and can serve as a retirement plan for employees. They are regulated by the federal government and must meet specific requirements to ensure fairness and transparency in how shares are allocated and managed.