An employee stock ownership plan (ESOP) is a defined contribution plan that provides a company's workers with an ownership interest in the company. Under the ESOP, companies provide their employees with stock ownership, typically at no cost to the employees. Shares are given to employees and are held in the ESOP trust until the employee retires or leaves the company, or earlier diversification opportunities, creating an opportunity for workers to amass long-term savings and benefit from their work.