Which of the following is a major problem of ESOPs?
A) Employees may become demotivated and frustrated if the share price falls, even though they have worked productively.
B) ESOPs place employees' pensions at risk because they are tied to the market performance of the organization.
C) Because of the cash involved, ESOPs can be damaging to the financial well-being of the organization.
D) Employees view the ESOP as a form of management control.

Question

Quizplus · Accepted Answer

Employees may become demotivated and frustrated if the share price falls, even though they have worked productively.

Which of the Following Is a Major Problem of ESOPs