The Backdrop Employee Stock Options are the most popular instruments in attracting, retaining, and rewarding employees. More and more private companies are using it to match employee expectations thereby making the overall compensation attractive. Thus, on one side, it helps the private companies to conserve cash which they need for their sustenance and competing with [...]
The pricing, as they say determines the success or failure of any product and so is for Employee Stock Options (ESOPs). Pricing of ESOPs termed as grant price/strike price/base price/exercise price depends upon basic objective(s) of the Company granting the options. It also depends upon various parameters like who is the proposed grantee, past performance, [...]
Broadly speaking, an Employee Stock Option (“ESOP”) Scheme is an embodiment of objectives, guidelines and rules. A note worthy thing in respect of ESOP is that it is a regulated instrument whether one talks about a listed or an unlisted company at whatever stage of business. If one starts to identify the key components of [...]
Stock Options or ESOPs, as used in a generic sense, is a very effective tool to retain key talent in the Company’s ecosystem. It not only assists the employee to create wealth for himself, but also, helps in aligning the individual objectives of the employee with Company’s overall goal. Having said that, while implementing [...]
