Question $50$

ESOPs $($employee stock option plans$)$ are often considered a powerful tool for increasing employee retention and motivation. How does the concept of

intrinsic motivation challenge the idea that stock options are always effective in motivating employees?

Intrinsic motivation suggests that employees are motivated by financial rewards alone, making stock options the only necessary incentive.

Intrinsic motivation suggests that employees prefer rewards that are disconnected from their work, such as stock options.

Intrinsic motivation indicates that employees are motivated by non$-$financial factors, such as autonomy and purpose, which may not be addressed by stock options.

Intrinsic motivation is irrelevant when employees receive significant financial incentives through stock options.

Intrinsic motivation is only applicable to low$-$skill jobs, where stock options are ineffective.