ESOP Direct - the only specialised ESOP firm in India

ESOP Direct recently conceived and conducted India's first national ESOP survey ESOP Design Practices 2001. The objective of the survey was to create a framework for compiling data on trends in ESOP design practices in India.

We propose to make this an annual feature. We also have plans to conduct periodical surveys on very specific topics such as "How are companies responding to sluggish stock markets with respect to their ESOPs" or "How have companies giving ESOPs performed vis a vis those not giving ESOPs".

Objective

Employees Stock Option Plans have emerged as a major motivation and retention tool amongst Indian companies. The popularity of ESOP's, which have been established for the last 5-7 years, is only expected to increase and get wider in coming years.

In spite of the wide coverage and financial and legal implications, there is no authentic source of information which gives an idea about the trends and practices followed by Indian companies in designing their Stock Option Plans. Companies who wish to implement ESOPs do not possess enough information about how the other companies in their field have designed the plan.

ESOP Design Practices 2001 survey aims at fulfilling this need of information. A complete survey report is made available only to the participant companies

Methodology

Around 150 companies who have implemented ESOPs were identified by us on the basis of information available with us, press reports, information on the websites, offer documents etc.

We approached the concerned officer in the company who was handling the implementation of ESOP.

For a sample number of companies we also made personal visits.

In all we received 40 responses which were used to compile this survey report.