Employee stock ownership plans: pluses and minutes.

Are ESOPs the answer for both raising capital and increasing employee benefits? A growing number of corporations seem to think so, and the number may increase if such plans continue in the favor of Congress. New laws have made ESOPs the only employee benefit plans that may be used for raising capital, and last year's tax reduction act offers the additional sweetener of a tax credit for companies with ESOPs. Nevertheless, such plans may not be a panacea for everyone. These authors point out their real advantages and pitfalls for both the employee and the employer who adopts such a plan. [ABSTRACT FROM AUTHOR]