ESOPs were originally designed to help improve worker productivity, but today they are also used to help prevent hostile takeovers.

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ESOPs (Employee Stock Ownership Plans) were initially created as a way to motivate employees and increase productivity by granting them ownership in the company through stock options. However, over time ESOPs have also been used as a defense mechanism against hostile takeovers by giving employees a controlling stake in the company.

ESOPs Were Originally Designed to Help Improve Worker Productivity, but Today