ESOPs are an important tool to link an employee's personal growth along with that of the organization.   MORE

The Finance Ministry has rejected a suggestion of a government panel to grant stock options to top-level employees in state-run banks, saying that such an incentive could not be given until a wider assessment mechanism was put in place.   MORE

Equity-based compensation could help Kenyan companies reduce employee turnover and motivate workers, management experts have said.   MORE

HP CEO to take $ 1in salary and remaining in Stock options.   MORE

One-year incentive plans questioned.   MORE

At the time of grant of stock options to its employees, the difference between the market price on the date of grant and the exercise price is recognized as compensation expense and amortized in the books of the company over the vesting period. In India, this compensation expense is not tax deductible for the company, the main contention being that the difference between the market price on the date of grant and the exercise price is only a notional expenditure.However, companies in the US can claim a tax deduction of upto $1 million for remuneration paid to its “covered employees” -CEO and its three most highly paid officers. However this limit of deduction does not apply to qualified performance based plans. Therefore companies usually structure stock options and stock appreciation right (SARs) plans in a manner to qualify as performance based compensation. Proposed regulations clarify that in order to be qualified plans, the plan under which these awards are to be granted must specify the maximum number of shares that may be granted to individual employees during a specified period and these limits also need to be disclosed to the share holders.   Read to know more

ESOP Direct launches its annual survey on ESOP practices   MORE

Stock Appreciation Rights (SARs)provide an employee the right to receive the appreciation in the value of shares of stock from the date of grant to the date of exercise. SARs may be settled either in cash or in shares. The form of payment may be specified at the time of grant or may be determined when they are exercised. In some plans the employee may choose the form of payment.

Interview of Mr. Harshu Ghate, Co-founder and MD, ESOP Direct to Human Factor.   READ MORE

FMCG firms use ESOPs to retain talent.   READ MORE

Performance based or time based vesting.   READ MORE

5th Annual Conference on ESOPs
block your date – 30th Nov at
JW Marriott, Juhu, Mumbai.
Details to follow soon