When the profits of Emm Corp. rose steadily over two quarters three years back, the employees of the company were given the offer of purchasing the company's shares at subsidized rates. Many of the employees who bought the shares have become extremely rich after the phenomenal growth Emm Corp. has had in the following years. This is an example of a bonus.

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An employee stock ownership plan (ESOP) is a company-established benefit plan in which employees acquire stock, often at below-market prices, as part of their benefits. A bonus is a pay plan that rewards employees for recent performance rather than historical performance.

When the Profits of Emm Corp