In a dynamic economic and legal ecosystem, it is imperative to revisit your existing Plan to yield the best results. We review your Plan in light of current trends as well as compliances.
REVIEW OF ESOP SCHEMES AND GRANT PRACTICES
Reviewing of Plan is essential for you to see which goals have been accomplished, whether changes need to be made and what new direction your company might want to take. This may arise due to the need for making a New grant, Limitation to expand the Equity pool, High burn rate, Evaluation of alternative structures, Regulatory changes, Mergers and Acquisitions, Public Listing of the Company, Correction of past inconsistencies and many others.
Grants Practices – Benchmark and Bring Plan in Line with Strategic Goals and Objectives
We review your existing grant practices and processes in order to benchmark with the relevant industry best practice. We analyze scheme parameters with a special reference to coverage, individual quantum, pricing of options, grant frequency, vesting conditions and schedule and ESOP pool size, in light of market trends and suggest grant parameters to make future grants more attractive for Plan participants. You can also call upon us for guidance on options outstanding with separated employees and existing employees in order to deal with the challenges of minority shareholding – pros and cons, associated costs, Tax implications after due diligence and making a recommendation.
Legal Compliances – Review and Modification of Plan Documentation to Ensure Compliance
We review existing ESOP schemes, grant letters, past compliances, enabling resolutions, employee communications, statutory filings to advise on any shortfall in legal compliances under applicable laws, and suggest modification in schemes to bring it in line with the company’s objectives. Privately held unlisted companies in particular, rely on our guidance on safeguards to be used in their ESOP scheme. We also help you with scheme modifications to render greater efficacy.
Employee Communication – Employees Need to Know the Changes which Affects Them
We facilitate employee communication, FAQ, modification in grant letter/surrender letter/letter of undertaking for obtaining consent from Plan participants in regard of existing grants to enable modifications.