While ESOPs might seem to offer a greater sense of security, there is also the potential to do more bad towards the employee than good. The problem appears to lie in an ESOPs retirement plan. Employees are likely to invest a great deal of money in the ESOPs stock, up to three times more than their retirement plans. 
If the ESOP fails, the company's failure is bound to deal a crushing blow to its employees, each of whom invested a great deal in the ESOPs stock. Essentially, the risk associated with employees receiving a share in the company's stock is massive, and in a way has the potential to be just as damaging to the employee if everything goes sideways.