Most plans are in the form of mutual funds, stock options, bonds, and other long-term investments. There are both advantages and disadvantages to these types of retirement plans. Virtually every large company offers this program. Employee Stock Ownership Plan Employee stock ownership plans gives employees stock with the company while allowing the company to borrow money at a reduced rate. These plans are usually tied in with the 401 plans.
Many companies match their contributions with company stock instead of money.
This plan can be a great motivator for the company. According to Bob Lewis, an analyst at Perot Systems, ESOP's work well because they deliver enough money to be meaningful, they give the employee a stake in the company's success. If the business is doing well, the stock is doing well. If a person works for the company and has a share of it, that is what motivates. Tips to Remember 1.