Startups aur growth companies ESOPs ko talent attract aur retain karne ke liye use karte hain – “salary thodi kam, lekin company grow hui to aapko bhi upside milega.” Legally, ESOP ek structured promise hota hai ki certain conditions meet hone par employee ko shares mil sakte hain.
Typical features:
- Vesting period – time ya performance milestones ke baad options gradually unlock,
- Exercise price – jis rate pe aap share kharid sakte ho (often discount),
- Cliff and good/bad leaver rules – jaldi quit karne pe kya hoga.
Companies ko ESOP scheme approve karne, board/shareholder approval, valuation, accounting and disclosures follow karne hote hain. Tax treatment bhi important hai – kab taxable hoga (exercise ya sale pe), kis rate pe, etc.
Investors ESOP pool ko cap table ka part samajh ke valuation decide karte hain. Unhe clarity chahiye ki kitna dilution future me aa sakta hai. Over-generous ya badly documented ESOP confusion create kar sakta hai.
Employees ko bhi blindly “x number of options” se excite nahi hona chahiye. Company ka stage, strike price, vesting terms, exit chances – sab realistically evaluate karna chahiye.
