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Contributions to a stock bonus plan are discretionary, but they must be substantial and recurring.
Bectors Food Specialities Limited ( Bectors.The potential downside to stock bonus plans for employees is that a disproportionate amount of their retirement savings can be tied up in a single investment - rarely a good idea.Add-Shop Promot View Profile SME IPO.These are offered by many private companies to promote employee ownership.Esops have slightly different legal and tax implications than stock bonus plans.In other words, at any given time, the company could be obligated to buy the shares held in employees' accounts.Nifty recorded new lifetime high at 11620; a gap up did not sustain; Pharma and IT were the biggest.For employers, a major disadvantage is the liability the outstanding put options create.Pdf ) 20-Aug Mrs.
On the employee side, the advantage is that it gives workers a vested interest in doing a good job.
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