What is Employee Stock Option Plan (ESOP)?
Employee Stock Option Plan (ESOP) is a type of employee benefit scheme that allows employees, directors, and officers to own shares in the company they work for. It is a type of scheme that enables the organization’s employees to have shares of the same organization at a price below the market price, i.e., discounted price. Employee Stock Option Plans (ESOP) are awarded to the employee based on their tenure.
Employee Stock Option Plans (ESOP) help the company make its employees more committed to the organization. In this way, employees can feel a sense of belongingness towards the company and will be motivated to stay with the company for a longer period and further can take ownership of the company.
Table of Content
- How does an Employee Stock Option Plan (ESOP) Work ?
- Example of ESOP
- Benefits of Employee Stock Option Plan (ESOP)
- A. Benefits of ESOPs to Employees
- B. Benefits of ESOPs to Businesses
- Procedure for the Issue of ESOPs by Private Companies
- What are the Tax Implications of ESOPs ?
- Employee Stock Option Plan (ESOP) – FAQs
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