10216. EMPLOYEE STOCK OPTION PLANS (ESOPS). This term paper explores the types and uses of ESOPs as well as analyzing their advantages and disadvantages to both the employee owner and the corporate employer who establishes the program. The effect of ESOPs on employee security, the influence of such programs over employee motivation and productivity, and the tax and finance ramifications for corporate sponsors are considered and discussed. In addition to considering the pros and cons of ESOPs in general, the analysis will look at their application in specific companies. KEYWORDS: esops employee stock options employee ownership employee motivation. 17 pages, 31 footnotes, 24 bibliographic sources.