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Employee Stock Ownership Plans: Are They Worth the Risks?

(Pension Rights Center)

In good financial times, Employee Stock Ownership Plans (ESOPs) have the appearance of being an excellent deal for employees, because ESOPs offer partial ownership over the company that employs them. However, ESOPs pose serious risks that employees may not recognize until it’s too late. This paper describes how ESOP participants do not face just a single risk, but a complex set of interrelated risks to their retirement security. 

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