Question

    To create a structure of ownership and long term commitment from the employees, companies provide

    A ESOPs Correct Answer Incorrect Answer
    B Incentive pay Correct Answer Incorrect Answer
    C Bonus Correct Answer Incorrect Answer
    D 360 degree appraisal Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    An employee stock ownership plan (ESOP) is an employee-owner program that provides a company's workforce with an ownership interest in the company. In an ESOP, companies provide their employees with stock ownership, often at no upfront cost to the employees. ESOP shares, however, are part of employees' remuneration for work performed. Shares are allocated to employees and may be held in an ESOP trust until the employee retires or leaves the company. The shares are then either bought back by the company for redistribution or voided.

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