search query: @indexterm EMPLOYEE STOCK OWNERSHIP / total: 81
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| Author: | Dunn, C. P. |
| Title: | ESOPs: the "Trojan Horse" of the antitakeover realm (ESOP - employee stock-ownership plan) |
| Journal: | Business Horizons
1989 : JUL-AUG, VOL. 32:4, p. 28-35 |
| Index terms: | EMPLOYEE OWNERSHIP EMPLOYEE STOCK OWNERSHIP MOTIVATION MANAGEMENT |
| Language: | eng |
| Abstract: | Management has been using the ESOP (employee stock-ownership plan) as an effective antitakeover tactic. But the hordes of employees inside an ESOP may strike the hand that created it. A turn of event has called into question the foundation of many such plans. ESOPs are utilized as mechanisms for fending off the advances of hostile corporate suitors. Rather than being implemented at the behest of employees, such plans are enacted by management as a means of maintaining the existing corporate governance. The antitakeover motivation behind an ESOP stands in contrast to the reasons for employing such an ownership structure. Moreover, such an impulsion may well violate the very spirit of ESOP regulation. |
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