A major problem of ESOPs is that:
A) motivation of employees is rarely achieved with ESOPs.
B) employees view the ESOP as a form of management control.
C) ESOPs place employees' pensions at risk because they are tied to the market performance of the organization.
D) because of the cash involved,ESOPs can be damaging to the financial well-being of the organization.

Question

Quizplus · Accepted Answer

ESOPs place employees' pensions at risk because they are tied to the market performance of the organization. This means that if the organization performs poorly, the employees may lose out on their retirement benefits. While ESOPs can provide some benefits for employee motivation and ownership, they also come with risks that should be carefully considered before implementing.

A Major Problem of ESOPs Is That