Notice: Trying to access array offset on value of type null in /var/www/progressus/wp-content/themes/oule/theme-layouts/post/service-content.php on line 6
Employee Stock Option Plan or Employee Stock Ownership Plan, abbreviated as ESOP, under the Indian system, enables employees of a company to purchase a certain number of shares of that company.
The price of the stock, referred to as Exercise Price, is either pre-decided at a lower rate than their existing market value or an employee is offered a certain percentage of his/her monthly stipend in the form of company’s stocks.
It is an efficient tool that improves remuneration mechanism and employee retention.
ESOP Glossary Terms
Grant Date:The day on which the employer and employee decides to enter into an agreement on owing shares at a future date
Vesting Date:The day on which an employee is entitled to purchase shares of the company that has employed him/her basis mutually agreeable terms and conditions
Vesting Period:The duration between the Grant Date and the Vesting Date
Exercise Period:The period, after shares having been vested, when an employee is eligible for buying the same shares
Exercise Date:The day on which an employee exercises the option
Exercise Price:This is the price at which an employee may exercise the option. Exercise price is usually lower than the existing Fair Market Value (FMV) of the share.
What we offer
Framing of scheme of ESOP in compliance with ESOP Guidelines as per Rule 12 of Share Capital and Debenture Rules 2014 and Section 62(1)(b) of the Companies Act 2013
Introduction of scheme to employees and underlines the taxability aspect
ROC compliance for scheme execution
Advising about the perquisite aspect and the capital gain aspect
Disclosure requirement as per IND AS 102
ESOP from Employer point of view and employer point of view