The board at TriCom Manufacturing Corp.has decided to allocate 20 percent of the company's shares to its workforce,at a discounted price.Apart from being a valued investment,the plan will allow the employees to take personal responsibility for the firm's performance.Which of the following employee incentive schemes does this best illustrate?
A) employee provident fund
B) employee gratuity fund
C) employee stock ownership plan
D) employee emergency loan program

Question

Quizplus · Accepted Answer

This best illustrates employee stock ownership plans. Companies turn employees into shareholders through employee stock ownership plans (ESOPs). These plans allow employees to purchase stock at a discounted rate or use company stock as an investment vehicle for retirement savings.

The Board at TriCom Manufacturing Corp