leveraged ESOP

(redirected from Leveraged Employee Stock Ownership Plans)

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 ?
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.
33) The IRS also released for public comment its proposed field agent examination guidelines for leveraged employee stock ownership plans (ESOPs), plans that may be top heavy, and limitations for defined contribution plans.