Leveraged Employee Stock Ownership Plan - LESOP

See: ESOP. See: RSU.

It makes sense for companies to pay their employees in one form or another, with equity or part ownership in the company. That way, presumably, they behave more like owners than just employees.

When an ESOP (Employee Stock Option Plan) is leveraged, employees are essentially loaned cash to buy the stock or buy out the options they've been granted in the company. They are thus leveraged to the company...with teeth.