Asked by Mitchell Caskey on Mar 10, 2024

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Although there are not many ESOPs in the U.S. at the present time, those that exist usually have employee representation on corporate board of directors.

ESOPs

Employee Stock Ownership Plans, which are employee benefit plans giving workers ownership interest in the company, usually as a form of retirement benefit.

Employee Representation

The practice of workers electing representatives to negotiate with management on their behalf, often in the context of labor relations.

  • Appreciate the role and representation of employees in corporations, particularly through ESOPs and board representation.
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JM
Joseph Martinez

Mar 10, 2024

Final Answer :
False
Explanation :
While ESOPs (Employee Stock Ownership Plans) are relatively common in the U.S., it is not a standard practice for them to automatically include employee representation on corporate boards of directors. The decision to include employees on the board is up to each individual company and is not a direct consequence of having an ESOP.