Feasiblity Study and Benchmarking
All equity linked incentives be it ESOP, RSU, SARs or Phantoms eventually have a contingent claim on the organization’s equity or cash flow or both. However, they have different impact on dilution, accounting, taxation and need to serve unique situations like lack of liquidity, getting traction at different employee levels, legal implications and administrative actions. ESOP Direct will help you do extensive prior research to decide the future strategy.
Which instruments should I implement? How it is going serve the company’s goals? How can I optimize the use of the equity pool? How will the taxation work? Can I implement more than one instrument? What is the employees’ outlook towards the instrument? What are the industry best practices?
ESOP Direct will answer all these and help you in identifying the right combination of alternative instruments necessary to make short term and long term strategies.
Evaluation of Alternative Instruments and Making Recommendation on Feasibility of Implementation :
Legal / Tax / Accounting Perspective
Effectiveness from Employee Perspective
Feasibility to Implement the Plan Through a Trust
Key Implications and Associated Risk
Industry Best Practices for Informed Decision Making