Dictionary of Finance and Investment Terms: Leveraged Employee Stock Ownership Plan (LESOP)
Leveraged Employee Stock Ownership Plan (LESOP)
Employee Stock Ownership Plan (ESOP) in which employee pension plans and profit-sharing plans borrow money to purchase stock in the company or issue convertibles exchangeable for common stock. In addition to the usual advantages of employee ownership, the LESOP is a way to ensure that majority ownership remains in friendly hands.
