Which of the following is NOT an advantage of ESOPs?
A) Firms can reward employees with shares.
B) The employees' pensions are less vulnerable due to diversification.
C) ESOPs can increase employees' pride of ownership.
D) ESOPs can provide an incentive for employees to increase productivity.

Question

Quizplus · Accepted Answer

ESOPs often involve employees holding a significant portion of their retirement savings in company stock, which can reduce diversification and increase vulnerability if the company performs poorly.

Which of the Following Is NOT an Advantage of ESOPs