Scribd Logo
Upload

Welcome to Scribd!

  • Compensation and Payroll Management: Topic: Employee Stock Option Plan

    Uploaded by

    Lakshmi Rama Reddy
    13 views7 pages
    This document discusses employee stock option plans (ESOPs) and their purpose, objectives, and workflow. It notes that ESOPs give employees the opportunity to purchase company stock at a preset price over a vesting period, with the objectives of rewarding performance, loyalty, and creating a sense of ownership. It recommends allocating options to management, senior, middle, and junior employees based on their level. The workflow involves HR creating the plan, employees accepting and exercising their options, and shares being issued to the employee's account. Key features outlined are acquiring shares at a preset price, vesting periods of at least one year, and potential lock-in periods before shares can be disposed.

    Original Description:

    Original Title

    20331 e 0096

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document discusses employee stock option plans (ESOPs) and their purpose, objectives, and workflow. It notes that ESOPs give employees the opportunity to purchase company stock at a preset price over a vesting period, with the objectives of rewarding performance, loyalty, and creating a sense of ownership. It recommends allocating options to management, senior, middle, and junior employees based on their level. The workflow involves HR creating the plan, employees accepting and exercising their options, and shares being issued to the employee's account. Key features outlined are acquiring shares at a preset price, vesting periods of at least one year, and potential lock-in periods before shares can be disposed.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    13 views7 pages

    Compensation and Payroll Management: Topic: Employee Stock Option Plan

    Uploaded by

    Lakshmi Rama Reddy
    This document discusses employee stock option plans (ESOPs) and their purpose, objectives, and workflow. It notes that ESOPs give employees the opportunity to purchase company stock at a preset price over a vesting period, with the objectives of rewarding performance, loyalty, and creating a sense of ownership. It recommends allocating options to management, senior, middle, and junior employees based on their level. The workflow involves HR creating the plan, employees accepting and exercising their options, and shares being issued to the employee's account. Key features outlined are acquiring shares at a preset price, vesting periods of at least one year, and potential lock-in periods before shares can be disposed.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 7

    COMPENSATION AND PAYROLL

    MANAGEMENT
    TOPIC: EMPLOYEE STOCK OPTION PLAN

    - Presented By
    R. Laxmi Rama
    20331E0096
    EMPLOYEE STOCK OPTION PLAN

    • A stock option is the opportunity, given by employer,


    to own a certain number of shares of your company's
    common stock at a pre-established price, known as
    the grant price, over a specific period of time, known
    as the vesting period.
    OBJECTIVE OF ESOP

    Sense of belonging and


    Reward performance Reward Loyalty ownership amongst the
    employees

    Motivates the Wealth creation for


    Attract Talent
    employees employee
    WHOM TO GIVE?
    Management
    50-70%
    structure
    Se
    nio
    r 30-50%
    Middle
    0-
    20
    % ESOP
    Junior Allocation
    WORK FLOW OF ESOP

    HR Creates option Employee accepts Employee


    plan option plan exercise options

    Shares are
    HR Approves
    HR Collects issued into the
    exercise
    payment employees
    transaction
    account
    SALIENT FEATURES OF ESOPS

    Employees can acquire shares at a pre-determined price


    Exercise of option plan is subject to vesting period
    --- Minimum period of one year between grant and vesting as per SEBI
    Guidelines
    Right to dispose of shares subject to lock-in-period as may be determined by the
    company
    Thank you

    You might also like