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The ESOP is worthless.
The ESOP panacea has not made UAL skies any friendlier.
In 2002 United entered bankruptcy, and the ESOP became worthless.
Like Gardener's Supply, the ESOP at Mercer Capital became a minority shareholder.
United should drop the ESOP [employee stock ownership plan, created in the restructuring six years ago].
They gave up contributions to their retirement plans in return for the ESOP.
Similar(25)
About 10% of the ESOPs are in public companies.
Employee benefits are partly paid by Medicare, but, as contended in the lawsuit, the HealthTrust ESOP was used as an improper means to trick Medicare into paying corporate expenses that were not reimbursable.
Second, to maximize the benefit of this ESOP, ask the investor to lay out more concretely what you'll be getting for it, and make sure the shares vest over time.
"The United ESOP was one of the worst-structured ESOP's of any I've ever seen," said Corey Rosen, executive director of the National Center for Employee Ownership.
"It was very obvious, with few exceptions, that they were targeting the employees who had been there the most time and who had the most ESOP shares," she said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com