Why ESOPs are More Than Just a Financial Incentive
ESOPs serve mainly as a form of employee benefit, aiming to align the interests of employees with the success of the company. By giving employees a stake in the organization, ESOPs can foster employee engagement, motivation and loyalty, which in turn can lead to increased productivity and a stronger company culture.
Communicating ESOPs with employees
Equity based compensation in any form or shape is relatively complicated to understand and also difficult to communicate. However, that precisely is the reason why communication is key to ensure its success. For good reason, [...]
Can ESOPs be a substitute for lower cash compensation?
ESOPs, broadly known as Equity based compensation, are often looked upon as variable non cash compensation in the Total Rewards strategy. Variable, because its value varies with growth in the business valuation. Non-cash, because any [...]
Who should be covered under ESOPs?
ESOP or any Equity based compensation instrument is more complex to understand than any other mode of compensation. At the same time, being a costly instrument, it needs to be used carefully. Simple answer [...]
ESOP Taxation Simplified
Employee stock options (‘ESOPs’ or ‘Options’) [we have used ESOPs as a common term for various equity-settled instruments] are very common instrument for sharing wealth generated by employees, by way of compensation. Like any [...]
Implementing ESOP without dilution
One of the key concerns of existing Investors, including Promoters is dilution. Dilution occurs when a company allots new primary Shares. In case of ESOPs, dilution can occur in two ways: In the % shareholding [...]