ESOP (Employee Stock Option Plan) is an employee benefit which gives the employee the opportunity to become an owner of company stock. Compared to other employee benefit plans, ESOPs are unique. Only an ESOP is required by law to invest primarily in the securities of the sponsoring employer. Among qualified employee benefit plans, an ESOP is unique in its ability to borrow money. As a result, "leveraged ESOPs" may be used as a technique to corporate finance.

There are approximately 10,000 ESOPs in the United States with 10 million employee-owners. This is 10% of the American work force.

Lawrence Transportation is 100% ESOP. The ESOP costs the employee nothing and the company makes all contributions to it. The benefits from an ESOP plan are in addition to your Social Security and other benefits derived through the company. LTS formed an ESOP committee. Members are employees (in various positions) within the company. At the end of the term, there is an election and all employees vote on the rotating employee's replacement.

ESOPs are a tool for employees to accumulate significant value to be used for retirement. Studies have found that employee owned companies have out performed other companies in a variety of different measures, and surveys of productive companies have found that employee ownership is a common characteristic.