An exchange bonus is a type of incentive offered to employees who participates in an employee stock purchase plan (ESPP). It's essentially a reward for choosing to invest in their company through buying shares. The exchange bonus can take different forms, but it usually involves the employer offering to match or add to the value of the employee’s ESPP contributions with additional free shares of stock. This is an added benefit on top of the discounted purchase price that employees receive when they participate in the plan. It's a way for companies to encourage their workers to invest in the company and build loyalty, while also providing an opportunity for employees to increase their wealth through share ownership.