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[Music] organizational incentive plans include stock ownership in the organization to reward its employees the goal of these plans is to get employees to think and act like owners a stock option plan gives employees the right to purchase a fixed number of shares of the companys stock at a specifies exercise price for a limited period of time if the market price of the stock exceeds the exercise price employees can then exercise the option and buy the stock the number of firms giving stock options to non executives has declined in recent years primarily because of changing laws accounting regulations and shareholder opposition firms in many industries have an employee stock ownership plan known as an esop which is designed to give employees docHub stock ownership in their organisations establishing an esop creates several advantages primarily the organization can receive favorable tax treatment on the earnings earmarked for the use of the ESOP another is that the ESOP gives employ
