Employees Stock Option Plan (ESOP)
A. ESOP (Employee Stock Ownership Plan) Planning Services means a process of Preparation of detailed ESOP Terms for;
- The Employees of Company/Organization.
- Employees vesting period, exercise price.
- Lock in period, Maximum Limits, Individual Limit.
- Taxation Compliances etc.
The vesting period is when an employee must wait before they can exercise their ESOPs. Vesting period can be immediate or gradual, depending on the company's ESOP terms / policy.
B. ESOP shares are part of the employees’ remuneration package. Not all the ESOPs Terms are the same. Rules on actions such as vesting and withdrawals can vary and it’s important to be aware of them. There are other versions of employee ownership include direct-purchase programs, stock options etc.
C. ESOPs are used by companies of all sizes, including a number of large publicly traded corporations. Accounting of ESOP in Financial Statements of Organization is also required.
Our Scope of Services:
- Detailed discussion with Founders/Business Owners to understand about the ESOP Framework required lock in period, employees eligibility etc.
- Preparation of detailed Scope Mandate for ESOP Planning and sharing with Founders /Business Owners.
- Framing ESOP Plan/Policy based on above factors including impacts of Taxation on Exercise of Employees Option and related its Accounting Entries.
- Sharing the ESOP Plan/Policy with the Founders/Business Owners.
- Support to Founders/Business Owners for successfully implementation of ESOP Plan/Policy.