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 receive shares of stock, often at no upfront cost, which can motivate them to work harder and align their interests with the company's success. ESOPs are often used as a corporate finance strategy and can serve as a retirement benefit for employees. They can also provide tax advantages for both the company and the employees, making them an attractive option for businesses looking to enhance employee engagement and retention.