A major problem of employee stock ownership plans is that
A)motivation of employees is rarely achieved.
B)employees view it as a form of management control.
C)it places employees' pensions at risk.
D)it can be damaging to the financial well-being of an organization.

Question

Quizplus · Accepted Answer

Employee stock ownership plans (ESOPs) place employees' pensions at risk, as they are invested in the company's stock. If the company performs poorly, employees could face financial losses in addition to losing their jobs. However, ESOPs can also provide benefits such as increased employee motivation and loyalty, and potentially improved financial performance for the organization. The other options listed are not necessarily major problems of ESOPs.

A Major Problem of Employee Stock Ownership Plans Is That