leveraged ESOP

(redirected from Leveraged Employee Stock Ownership Plan)
Also found in: Acronyms.

Leveraged ESOP

An employee stock ownership plan in which the sponsoring company borrows funds in order to purchase shares from itself, which it then distributes or sells to employees as part of their compensation. It repays the loan with annual contributions.

leveraged ESOP

An Employee Stock Ownership Plan that borrows funds to purchase securities of the employer.
References in periodicals archive ?
Or more correctly, a leveraged employee stock ownership plan is about to become the proud possessor of your organization .
The 2001 period included a one-time pre-tax charge of approximately $492,000 due to the acceleration of principal payments associated with the Company's internally leveraged Employee Stock Ownership Plan.
133(a) allows a bank to exclude from gross income 50% of the interest received on loans to leveraged employee stock ownership plans (ESOPs) or their sponsoring corporations, to the extent that the loan proceeds are used to acquire employer securities for the plan.
During 1994, new accounting requirements became effective for leveraged Employee Stock Ownership Plans (ESOP's) which had acquired shares of the sponsor's common stock after December 31, 1992.