Asked by tommy lindberg on Jul 26, 2024

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An employee stock ownership plan denies employees the right to participate in votes by shareholders even if the stock is registered on a national exchange.

Employee Stock Ownership Plan

A program that grants employees ownership interest in the company, typically through the allocation of stock.

Votes By Shareholders

The action of shareholders exercising their rights to vote on corporate matters, such as electing directors or approving mergers.

  • Understand the implications and roles of stock options and retention bonuses in employee compensation.
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Natty SynorivaJul 29, 2024
Final Answer :
False
Explanation :
Employees who participate in an employee stock ownership plan (ESOP) do have the right to vote their shares on issues such as the election of board members and other corporate matters. However, there may be restrictions or limitations on the voting rights depending on the specifics of the ESOP.