What is the primary focus of an employee stock ownership plan (ESOP)?

The primary focus of an employee stock ownership plan (ESOP) is to invest company contributions in employer securities. ESOPs are a type of employee benefit plan that primarily aims to provide employees with an ownership interest in the company, typically through the acquisition of shares of the company’s stock. This allows employees to directly participate in the financial success of their employer, creating an incentive for them to work harder and become more committed to the company's growth.

ESOPs are designed to offer employees a way to accumulate wealth, particularly linked to the performance of the company. As the value of the company's stock increases, so does the value of the employees’ retirement savings. This ownership model aligns the interests of employees and the company, often leading to increased productivity and enhanced job satisfaction.

The other choices do not accurately represent the main objective of an ESOP. While promoting employee savings for retirement can be a benefit of such plans, it is not the primary focus—rather, the focus is on ownership through stock. Providing health benefits through employer insurance is unrelated to the concept of an ESOP, and managing employee payroll deductions typically pertains to regular salary handling rather than equity ownership.