The incentive value of ESOP stock awards or purchases is based on the idea that the "employee owners" will be motivated to work hard so that the organization will perform well and its stock price will rise.

Question

Quizplus · Accepted Answer

ESOP stock awards or purchases provide employees with a vested interest in the success of the company, thereby motivating them to work hard and contribute to the organization's growth and success. As the stock price rises, employees see an increase in the value of their share ownership, resulting in a strong connection between their personal financial success and that of the company.

The Incentive Value of ESOP Stock Awards or Purchases Is