What Happens to ESOP Benefits When a Company Closes or is Sold?

Xumane Equity28 Aug, 2023Business

Employee Stock Ownership Plans (ESOPs) have gained popularity as a powerful tool for fostering employee loyalty, engagement, and financial participation in the success of the companies they work for. While ESOPs have several benefits, including improved productivity and loyalty, concerns naturally arise about what happens to these benefits when a company faces closure or is sold. In this blog, we will explore the fate of ESOP benefits in such situations and examine potential outcomes for the employees involved.