ESOPs were originally designed to help improve worker productivity, but today they are also used to help prevent hostile takeovers.

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ESOPs or Employee Stock Ownership Plans were originally designed to improve worker productivity and provide employees with a stake in the company's success. However, over time, they have also been used as a defense against hostile takeovers by diluting the ownership of the company's shares.

ESOPs Were Originally Designed to Help Improve Worker Productivity, but Today