Which term denotes a retirement plan that positions employees as beneficiaries with stock that vests over time?

Which term denotes a retirement plan that positions employees as beneficiaries with stock that vests over time?

• A. Employee Stock Ownership Plan
• B. Individual Approach
• C. Moral-Rights Approach
• D. Justice Approach

Answer: (A)

An Employee Stock Ownership Plan is a retirement arrangement that gives employees an ownership stake in the company by holding stock in a trust for them, with ownership earned over time through vesting. The vesting schedule means employees gradually gain full rights to the shares as they continue to work for the company, helping align employees’ interests with the company’s performance and aiding retention. The other terms listed are ethical frameworks, not retirement savings vehicles for ownership over time, so they don’t describe a plan where stock is allocated to employees and vests as a benefit.

An Employee Stock Ownership Plan is a retirement arrangement that gives employees an ownership stake in the company by holding stock in a trust for them, with ownership earned over time through vesting. The vesting schedule means employees gradually gain full rights to the shares as they continue to work for the company, helping align employees’ interests with the company’s performance and aiding retention. The other terms listed are ethical frameworks, not retirement savings vehicles for ownership over time, so they don’t describe a plan where stock is allocated to employees and vests as a benefit.