ESOP Trust – Why, When and How?
An ESOP trust is an entity established by companies to hold shares for the purpose of the ESOP program and /or to hold shares on behalf of eligible employees participating in the ESOP program. These trusts have become a mandatory requirement in India in case an ESOP program contemplate secondary shares.
How much Equity should be kept aside for ESOPs?
ESOPs get converted into Equity shares and result in dilution of existing shareholders’ ownership. In this context, how much Equity should the Promoters keep aside is a key decision while implementing any ESOP Plan. [...]
August 2020
Underwater Options: Alternative Approaches and Leveraging Opportunities for Advantage
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Should ESOP Plans provide for giving liquidity / enable encashment to employees? If so how and when?
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, [...]
Pricing of ESOPs and its implications
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) [...]