The Effect of ESOP Adoptions on Corporate Performance: Are There Really Performance Changes?
Employee Stock Ownership Programs (ESOPS) have long been promoted as a motivational tool: employees become profit-minded owners. Latterly, however, more ESOPs are being used as part of a takeover defense: here, the ESOPs main purpose is to put more company stock in friendly hands – the employees – who, like existing management, could suffer layoffs, ect. in a hostile takeover.