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For employee stock ownership plans to be effective in improving performance, they must ________.

Answer :

Employee stock ownership programmes must be executed in such a way that employees psychologically benefit from them.

Employee Stock

Employee stock options (ESOs) are a type of equity remuneration given to employees and executives by firms. Instead of immediately distributing shares of stock, the corporation grants derivative options on the stock. These options, like traditional call options, give the employee the right to acquire the company's stock at a predetermined price for a short time. The terms of ESOs will be properly spelt out in an employee stock options agreement. In general, the largest advantages of a stock option are obtained when a company's value increases above the exercise price.

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