Employee Share Ownership Trust

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Employee Share Ownership Trust

An employee benefit in which employees are sold shares in the publicly-traded company for which they work through a trust. ESOTs are designed to help give employees equity in the company to boost morale and thereby improve productivity. It also provides the company with a source of revenue. Buying shares through an ESOT gives employees various tax benefits, and may give employees a greater say in the election of the board of directors. It is similar to, but different from, an employee stock ownership plan.
References in periodicals archive ?
OPTIONS HELD IN EMPLOYEE SHARE OWNERSHIP TRUSTS ("ESOTs")
2% while the Irish government has 28% and the Employee Share Ownership Trusts about 12%.
The Irish Airline Pilots Pension stake, combined with the government's 28% and 12% owned by employee share ownership trusts, means government and staff currently hold 42% of Aer Lingus.
The current, comparatively complicated, arrangements that have to be carried out to maximise the chances of a tax deduction, including the need to set up employee share ownership trusts, have put off many companies.
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