ESOP Advisory & Compliance
ESOP Advisory & Compliance helps startups and tech firms reward employees through equity participation. These plans enhance retention, motivation, and ownership while ensuring compliance with tax and corporate laws.
Types Of ESOP Advisory & Compliance
ESOP structures differ based on their objective, ownership, and reward design.
Employee Stock Option Plan
Employees gain the right to buy company shares at a predetermined price after vesting, aligning their goals with business success.
Employee Stock Purchase Plan
Allows employees to buy shares at a discounted rate through salary deductions, promoting long-term engagement.
Restricted Stock Units
Shares granted after performance or tenure milestones, providing deferred ownership benefits.
Phantom Stocks
Cash-based incentive linked to the company’s share value without transferring actual stock ownership.
Stock Appreciation Rights
Rewards employees for stock value increase, encouraging productivity and commitment.
Sweat Equity Shares
Allotted to founders or employees contributing intellectual property, skills, or creative innovation.
Why ESOP Advisory & Compliance Is Important?
Customized Plan Design
Tailored ESOP schemes for each company.
Legal Compliance
Complete ROC and SEBI adherence.
Valuation Support
Fair market value calculation for shares.
Tax Advisory
Structuring tax-efficient employee benefits.
FAQs
What is an ESOP?
An Employee Stock Option Plan gives staff the right to purchase company shares at a set price.
Who can issue ESOPs?
Any private or public company, especially startups seeking employee retention.
Is ESOP taxable?
Yes, at both exercise and sale, depending on valuation and capital gains.
What is vesting?
The period after which employees become eligible to exercise their options.
Do ESOPs affect company ownership?
Yes, they dilute ownership slightly but enhance loyalty.
Why are ESOPs important?
They motivate employees, align interests, and strengthen organizational growth.