Question

What happens to stock llocation under various plans when the employee leves?

Answer 1

In an ESOP, a company sets up a trust fund, into which it contributes new shares of its own stock or cash to buy existing shares. This change will not affect 100%-ESOP owned S corporations because they don't pay tax. Shares in the trust are allocated to individual employee accounts.

Answer 2

Explanation:

Penalty for Early Withdrawal From ESOP :

However, if you quit, you only will receive the amount of stock that has been vested, or completely given to you during your tenure. When you quit, you will have to wait for the company to distribute the stock to you, up to six years.