Employee Stock Options (a.k.a. ESOP’s) are a method of compensating key employees, with the management giving shares in company as additional compensation over and above the salary. This is especially true in the case of rapidly growing companies (such as early stage ventures), which are cash strapped but have stock in the company available, for such companies ESOPs becomes a primary tool to reward and retain their key talent.
Employees are inspired to have ESOPs given the massive upside potential if the company scales, with a very limited downside risk, while the company benefits by retaining and motivating employees who otherwise could be too expensive.
Our team is well versed with the ESOP rules, and having implemented stock options for numerous companies our dedicated team will be able to structure an ESOP policy to suit your company’s particular requirement – whether you are a corporate giant or a start-up.