Question: Discuss how equity perceptions may be affected if a company chooses to switch from Employee Stock Ownership Plans (ESOP) to merit pay. Provide a recommendation,

Discuss how equity perceptions may be affected if a company chooses to switch from Employee Stock Ownership Plans (ESOP) to merit pay. Provide a recommendation, based on equity theory, that would help employers to ensure that employee inputs remain high after switching from one compensation plan to the other.

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