ESOP is an Employee benefit Plan which makes the employees of a company owners of stock in that Company.
ESOP is a plan to compensate, retain and attract employees.
ESOP is a contract between a Company and its employees that give employees the right to buy a specific number of the company's shares at a fixed price within a certain period of time.
ESOP is a step ahead to encourage, motivate and retain the existing employees in the company. Human resource is the most valuable asset for any company, which makes it important to have a idea about the incentive plans. This presentation focuses on one such area i.e. issue of ESOPs by companies in India.
With the promulgation of Companies Act, 2013, provisions governing issuance of shares by offering Stock Options to the Employees have been recognized under Section 62(1)(b) of the new Act, read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014.
This presentation is prepared by considering various practical aspects and also the issues while implementation of the same at the Corporate level.Mainly the Companies act 2013 is taken into account to understand the basics of ESOPs. It even covers the procedural requirements.
It explains the basic concept of how employee stock option plan works and gives a brief about the rules governing the issuance of the same as mentioned under the Companies Act, 2013. It also mentions the rules in place which govern the issuance of employee stock option plan by a foreign company to its employees resident in India. It also explains two case studies about the issuance of ESOP by Flipkart and redbus and how sometimes employees might be cheated in the name of ESOP.
ESOP is a step ahead to encourage, motivate and retain the existing employees in the company. Human resource is the most valuable asset for any company, which makes it important to have a idea about the incentive plans. This presentation focuses on one such area i.e. issue of ESOPs by companies in India.
With the promulgation of Companies Act, 2013, provisions governing issuance of shares by offering Stock Options to the Employees have been recognized under Section 62(1)(b) of the new Act, read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014.
This presentation is prepared by considering various practical aspects and also the issues while implementation of the same at the Corporate level.Mainly the Companies act 2013 is taken into account to understand the basics of ESOPs. It even covers the procedural requirements.
It explains the basic concept of how employee stock option plan works and gives a brief about the rules governing the issuance of the same as mentioned under the Companies Act, 2013. It also mentions the rules in place which govern the issuance of employee stock option plan by a foreign company to its employees resident in India. It also explains two case studies about the issuance of ESOP by Flipkart and redbus and how sometimes employees might be cheated in the name of ESOP.
Objectives & Agenda :
Employee Stock Option Scheme and Sweat Equity Shares are the additional forms of raising funds by a Company. In addition to fund raising option, these two types of issue act as an incentive measure to the employees of the Company and to align their interests with those of shareholders in the Company. The webinar provides an overview of ESOP and Sweat Equity Shares, provisions under Companies Act, 2013, compliance formalities, tax implications and judicial precedents.
The retirement benefits mainly consist of the employees' leave encashment (employees are allowed to accumulate leaves and exchange them for cash on their retirement), retirement gratuity, and the amount that they were contributing to their provident fund account throughout their service.
Application of the Act
When gratuity is payable
Amount of gratuity payable
Power of exempted
Obligations and rights of the employer
Penalties
Sec.2(e) "employee" means any person employed to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work
it does not include an apprentice
Sec.2 (s) "wages" includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
Companies Act - Companies Act, 1956 - Features - Types of Companies Act under the Act - Introduction of Companies act 2013 - Structural Comparison - Objectives of the Act - Meaning and Features of the Company - Monitoring and Regulatory Authorities - SFIO - NCLT - Challenges of Companies act 2013 - Provisions of Company Act 2013 -
Objectives & Agenda :
Companies can use either equity or debt form to raise capital. Equity can be raised by way of rights issue, bonus issue, private placement, public issue, etc. An offer of securities made to the existing shareholders of the Company is a rights issue. Bonus shares may be issued to the members of the Company out of its free reserves, or securities premium account or capital redemption account. The webinar covers the statutory / practical aspects of rights issue and bonus issue, including caveats relating to such issues.
Bank Mandiri merupakan bank yang didirikan oleh
pemerintah Indonesia dalam rangka restrukturisasi
perbankan Indonesia dan berdiri pada 2 Oktober 1988. Bank
Mandiri merupakan gabungan dari empat bank pemerintah,
yaitu Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor
Impor Indonesia, dan Bank Pembangunan Indonesia.
Chapter 5 motivasi dari konsep ke aplikasiAndi Iswoyo
1. Mengidentifikasi 4 unsur umum program MBO
2. Menjelaskan model 5 langkah penyelesaian masalah dalam OB Mod
3. Menjelaskan mengapa para manajer ingin menggunakan program keterlibatan karyawan
4. Mendefinisikan gugus mutu
5. Menjelaskan bagaimana ESOP dapat meningkatkan motivasi karyawan
6. Menjabarkan keterkaitan antara program pembayaran berdasarkan keterampilan dan teori motivasi
Objectives & Agenda :
Employee Stock Option Scheme and Sweat Equity Shares are the additional forms of raising funds by a Company. In addition to fund raising option, these two types of issue act as an incentive measure to the employees of the Company and to align their interests with those of shareholders in the Company. The webinar provides an overview of ESOP and Sweat Equity Shares, provisions under Companies Act, 2013, compliance formalities, tax implications and judicial precedents.
The retirement benefits mainly consist of the employees' leave encashment (employees are allowed to accumulate leaves and exchange them for cash on their retirement), retirement gratuity, and the amount that they were contributing to their provident fund account throughout their service.
Application of the Act
When gratuity is payable
Amount of gratuity payable
Power of exempted
Obligations and rights of the employer
Penalties
Sec.2(e) "employee" means any person employed to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work
it does not include an apprentice
Sec.2 (s) "wages" includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
Companies Act - Companies Act, 1956 - Features - Types of Companies Act under the Act - Introduction of Companies act 2013 - Structural Comparison - Objectives of the Act - Meaning and Features of the Company - Monitoring and Regulatory Authorities - SFIO - NCLT - Challenges of Companies act 2013 - Provisions of Company Act 2013 -
Objectives & Agenda :
Companies can use either equity or debt form to raise capital. Equity can be raised by way of rights issue, bonus issue, private placement, public issue, etc. An offer of securities made to the existing shareholders of the Company is a rights issue. Bonus shares may be issued to the members of the Company out of its free reserves, or securities premium account or capital redemption account. The webinar covers the statutory / practical aspects of rights issue and bonus issue, including caveats relating to such issues.
Bank Mandiri merupakan bank yang didirikan oleh
pemerintah Indonesia dalam rangka restrukturisasi
perbankan Indonesia dan berdiri pada 2 Oktober 1988. Bank
Mandiri merupakan gabungan dari empat bank pemerintah,
yaitu Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor
Impor Indonesia, dan Bank Pembangunan Indonesia.
Chapter 5 motivasi dari konsep ke aplikasiAndi Iswoyo
1. Mengidentifikasi 4 unsur umum program MBO
2. Menjelaskan model 5 langkah penyelesaian masalah dalam OB Mod
3. Menjelaskan mengapa para manajer ingin menggunakan program keterlibatan karyawan
4. Mendefinisikan gugus mutu
5. Menjelaskan bagaimana ESOP dapat meningkatkan motivasi karyawan
6. Menjabarkan keterkaitan antara program pembayaran berdasarkan keterampilan dan teori motivasi
group presentaion on 17 sept 2012 at karachi university subject Humen resource managment........ Hassan Khokher,Muhammad Waqas Rafiq,Muhamad waqas Raza.Waqar Ahmed.Husnain.......
5
Total Reward Strategy
Total Rewards Strategy
Team D
HRM/600
July 27, 2014
Professor Carlos Jon
Total Rewards Strategy
Success at Motors and More Inc. is largely attributed to our dedicated employees, which is also attributed to the Total Rewards Strategy currently used to entice our workers. According to World at Work Organization (n.d.), total rewards refers to, “all of the tools available to the employer that may be used to attract, motivate and retain employees.” These rewards entail all the factors that an employee would perceive to be generating value from the work that they offer to the firm.
We have adopted a Total Rewards Strategy that ensures the best workers are attracted. The Total Rewards Strategy is comprised of five elements, including; compensation, benefits, performance and recognition, work life and career, and development opportunities. Good! These elements provide organizational tools to generate value from our employees. We are committed in ensuring our employees get the best rewards so that they remain productive and focused on our vision which in turn benefits our organization. Additionally, we will implement lead-lead strategy for the next three years and re-examine where we stand afterward which also complements our strategic mission and business plan.
Compensation Strategy
According to World at Work Organization (n.d.), compensation refers to the “pay provided by an employer to an employee for services rendered”. Our employees deserve to be rewarded according to their performance, which is driven by their skills, talent, and productivity. The key to retaining the “most talented” workers in any successful organization is pay for performance and a strong compensation package. The core compensation elements for our workers are;
Base pay - also referred to as “fixed pay”. This compensation offered does not differ depending on the performance of our employees. Just as the name suggests, this is a fixed amount, and is determined depending on where our employees fall in the hierarchy. Illustrate the hierarchy An annual increase is automatic for all employees on a rate of 2% of their annual pay but not to exceed more than 5% of their annual basic pay. Automatic for all employees – management and non-management; and part-time as well?
Variable Pay - used to reward our employee’s performance. This is an excellent motivational tool which has been implemented to strengthen our worker’s performance. Variable pay is normally offered to our workers after they meet minimum length of service – 2 years for managerial levels and 4 years for non-managerial levels. Additionally, this reward is only given to those employees whose annual performance reviews indicates meritorious service or performance directly resulting to an innovation of any key products or accessories.
Short term Pay – also falls under variable pay where employees are rewarded annually according to their performance as indicated on t.
This presentation provides a look at Performance-based Equity from three angles: Design, Legal issues (provided by Jennifer George at Orrick) and Administration concerns (provided by Paz Dizon of Gilead). The administrative concerns is especially interesting since Paz drills deep into some of the difficulties and how she handled them.
COMPENSATION PRACTICES
Compensation is the process of providing adequate, equitable and fair remuneration to the employees. It is what employees receive in exchange for their contribution to the organization. It is a comprehensive term which includes pay, incentives and benefits offered to the employees.
PURPOSEOF COMPENSATION
THE PAY MODEL
STRATEGIC COMPENSATION PLANNING
COMPENSATION POLICY ISSUES
COMPENSATION ADMINISTRATION PROCESS
CLASSIFICATION OF REWARDS
COMPONETS OF FINANCIAL COMPENSATION
BASE PAY
VARIABLE PAY/PAY FOR PERFORMANCE : INCENTIVES
TYPES OF INCENTIVES
Equity/ Stock-based compensation is a method by which corporations use options to buy stock at subsidized/ no cost usually at a future date to incentivize, retain and reward their employees/ advisors.
The presentation discusses various aspects of Corporate Governance and involved issues, keeping in view the recent developments and controversies arose in conglomerates such as Tata and Infosys. It aims at portraying the extant position in filed of Corporate Governance vis-a-vis a pragmatic view of what it would be.
A Presentation given by Mr. Pavan Kumar Vijay, Past President, ICSI, Chairman-Secretarial Standards Board
on Corporate Governance through the eyes of Secretarial Standards.
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on M&A Valuation and challenges at a Business Valuation Masterclass organised by VC Circle on 31st August, 2016. Corporate Professionals acted as the event supporting partner.
• In case of a merger valuation, the emphasis is on arriving at the relative values of the shares of the merging companies to facilitate determination of the swap ratio, hence, the purpose is not to arrive at absolute values of the shares of the companies. The key issue to be addressed is that of fairness to all shareholders. There are established legal precedence for merger valuation methodologies:
• Valuer’s role is to incorporate case specific factors and use appropriate methodologies so as to determine a fair ratio
• Usually, best to give weight ages to valuation by all methods
• Market price method and Earnings methods dominate.
• It is observed that in case of M&A, the Valuations depart from the concept of “Fair Value” as elements like Distress Sale, Desperate Buy, Comparable Transaction Multiples come into play reflecting Price than Value.
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Relative Valuation - Techniques & Application at a Business Valuation Masterclass organised by VC Circle on 31st August, 2016.
Relative Valuation in which value of an asset or liability is done by comparing it to its Peers is pervasive and preferred for ascertaining Fair Value at a point of time as it reflects the market positioning of the Industry and Peers at that time. While Discounted Cash Flow (DCF) method is applied for arriving at Fundamental Valuation, most M&A transaction are based on Relative Valuation multiples (mostly Earnings based). The valuation ratio typically expresses the valuation as a function of a measure of Key Financial Metrics like PE, EV/EBITDA, EV/Sales or Book Value Multiple.
But before using a multiple, one should know the fundamentals determining the multiple and how changes impact it. Sanity check through use of fundamental valuation method like DCF is strongly recommended.
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Valuation Principles & Techniques in Ind AS at a seminar organised by Gurgaon Branch of ICAI on 3rd September, 2016.
IndAS113 prescribes Fair Valuation definition, Techniques, Application and its Hierarchy. About 75% of the Balance Sheet Size is expected to change due to Fair Value Accounting (#IndAS109 #Financial Instruments, #IndAS102 #Share based payments, #IndAS16 Property Plant Equipments (PPE), #IndAS103 #Business combination etc. shall be impacted using #FairValue. Time to get ready, Plan Prepare and Align with the new requirements...
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
The 2015 budget had long list of expectations. On one hand; the Government has addressed major issues surrounding the foreign investors which would certainly boost capital market inflows and revive the private equity industry (by deferring GAAR by 2 years and clarifying Permanent Establishment & Indirect Transfer of Assets). On other hand; it has just rationalized the subsidies. Probably as we see growth coming in and more job creation; subsidy burden can be better dealt with by the Government. Though there are no direct benefits for the middle class. However incentives have been introduced to encourage savings. These savings are expected to fuel the infrastructure and other investment plans laid out by the Government. Certainly Foreign investors have a reason to cheer for this Pro Business; Pro Growth Government budget.
Takeover Panorama, a Monthly Newsletter by Corporate Professionals on Takeove...Corporate Professionals
-The brief synopsis of recent Judicial Pronouncements given by the SEBI, AO, SAT, Informal Guidance and Consent orders passed in the month of December in the matter of SEBI Takeover Regulations.
-The brief synopsis of latest Open Offers given by the National as well as International Acquirers under the SEBI Takeover Regulations
-Unhide the hidden but important provision of the SEBI Takeover Regulations which generally get unnoticed on a plain reading of the regulations.
Acquisition of stake in YourNest Angel Fund by Religare Global Asset Management
Acquisition of stake in Bokaro Jaypee Cement by Dalmia Bharat
Telstra Health Acquires Business of IdeaObject
Promulgation of SEBI (Share Based Employee Benefit) Regulations, 2014Corporate Professionals
With our endeavor to disseminate information upon the SEBI’s new Regulations, we have prepared a small presentation on Promulgation of SEBI (Share Based Employee Benefit) Regulations, 2014.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
1. An Online Venture of
EMPLOYEE STOCK OPTION PLAN
Mohini Varshneya
9971673332 / 011-40622231
mohini@indiacp.com
info@eesoponline.in
2. ESOP
Employee Stock Option Plans/Equity Incentive Plans (commonly referred to as
ESOPs) are one of the most important tools to attract, encourage and retain
Employees. Nowadays, these ESOPs are being increasingly used as a compensation
tool by the Corporate Houses with the basic premise of creating wealth for the
Employees, on one hand and motivating Employees to have long-term career
aspirations in the Organization, on the other.
Extending benefits through ESOPs is like creating a win-win situation for both
Employer & Employee:
Owners Employees
3. ABOUT US
is a venture promoted by Corporate Professionals Group, which is best
illustrated for providing widest spectrum of corporate services at one stop.
We are recognized as a destination where all paths in hunt for corporate
solutions end. Through our strong foundations and robust growth, we have
emerged as leading corporate advisors attaining an edge in providing
services at internationally competitive standards. Our diversified team of
professionals who have attained expertise in delivering supreme corporate
services utterly justifies our name, Corporate Professionals.
4. WHY ESOP???
To attract, reward, motivate and retain employees for high levels of individual performance
and for unusual efforts.
Promote employee ownership culture and reduce the attrition.
To improve the financial performance of the Company, which will ultimately contribute to
the success of the Company.
Enhances job satisfaction of the Employee due to ownership incentive
Companies grant an option to employees to acquire shares of their employer company over
a period of time at a reduced price or nil price.
ESOP proves to be a good retirement benefit plan for employee.
Therefore ESOP is primarily a kind of incentive to hold the employees to the
company's fold.
5. RESTRUCTURING MODES UNDER ESOPs
Stock Options
(Sharing in the Capital of the
company)
Employee
Stock
Option
Scheme
(ESOS)
Employee
Stock
Purchase
Plan
(ESPP)
Restricted
Stock
Units
(RSUs)
Stock Indexed
Plans (No sharing
in the Capital of
the Company)
Stock
Appreciation
Rights
(SARs
Phantom
Stocks
9. WHO ARE NOT COVERED UNDER THE AMBIT OF TRUSTEES
Directors
Key Managerial Personnel
Promoter of he Company
Or any relative of such Director, Key Managerial Personnel or
Promoter
Beneficial owner holding 10% or more of the paid-up capital
10. ARENA OF EMPLOYEES UNDER COMPANIES ACT, 2013
Employees Covered
Permanent Employees
Whole Time Directors
Other Directors Employees Not Covered
Temporary Employees
Independent Directors
Directors holding 10% capital of the
Company.
Employees related to Promoter Group
11. REGULATORY REGIME
The Indian Laws that govern the framework of ESOPs
are:
Companies Act, 2013 along with Rules;
Companies Act, 1956;
Income Tax Act, 1961 (including Rules and Circulars issued
thereunder);
Foreign Exchange Management Act, 1999 (including Rules and
Regulations enacted there under);
12. ESOP PROCEDURE AS PER COMPANIES ACT, 2013
Step
1
• Hold a Board Meeting to consider ESOP.
Step
2
• If required constitute Compensation Committee and Compensation Committee shall plan the
scheme of ESOP.
Step
3
• Hold General Meeting of the Shareholders for approval of the ESOP Scheme.
Step
4
• On receipt of letter of acceptance of option along with upfront payment, from the Employee,
issue the option certificates.
Step
5
• After expiry of vesting period, the options shall vest in the employee. At that time, the Company
shall issue a letter of vesting along with the letter of exercise of options.
Step
6
• Receipt of letter of exercise from employee during the exercise period.
Step
7
• Hold a Board Meeting at the suitable interval during the exercise period for allotment of shares
on options exercised by the Employees.
Step
8
• Dispatch of letter of allotment along with the share certificates.
13. The above mentioned ESOP Procedure is
summarized as follows:
Board Meeting
General Meeting of shareholders for obtaining
assent of shareholders in accordance with
Section 62 of the Companies Act, 2013
Grant of options
Exercise of option by an employee
One time
Graded
Vesting period is the time period
between the grant and exercise of
option, which can be any time
period as the Management
decides, in the Scheme.
14. PROVISIONING OF MONEY BY COMPANY FOR EMPLOYEE WELFARE
TRUSTS
Companies Act, 2013 allows Companies to make provision of money involving
purchase or subscription of its own shares or shares of holding company subject
to the following:
The scheme of provision of money to be separately passed by the
Shareholders.
Value of the Shares in the Trust shall not exceed 5% of the aggregate of
paid up capital and free reserves of the company.
Valuation of the shares purchased by the Trust is to be made by the Registered
Valuer in case of Unlisted Companies.
15. VALUATION: AN IMPORTANT ASPECT IN STOCK OPTION PLANS
In any Stock Option Plan, the Valuation aspect plays a very crucial role. The
value of stock options is needed upon grant, during interim periods and at the
final payment date to facilitate the calculation of the benefit extended to the
Employees.
For ESOPs, there are basically 2 types of Valuations:
Accounting Valuation: This Valuation is required to amortize the Employee
Compensation Cost during the vesting period. Accordingly, the compensation
value is computed initially i.e. at the time of Grant and at the end of each
reporting period till the liability in respect of Options granted gets settled.
Perquisite Valuation: This Valuation would be conducted only in case of
unlisted Companies, at the time of Exercise of Options by the Employee to
know the value of the perquisite to be added in the Employee’s salary for the
month in which he makes the exercise of his option.
16. DECISIVE CRITERIA
Quantum
Attractive enough to create “wealth”
Coverage of Levels of Employees
Equity Share Capital Limit
Pricing
Freedom to determine the Exercise Price in conformity with the Accounting
Policies.
Taxation Aspects
Income Tax related
Vesting period(optional)
Minimum Period of 1 year for 1st Vesting.
Time based or performance based
Standard across the board or different for key people
Uniform, front-ended, back-ended
Policy
Yearly / half-yearly / quarterly grants
New joinees – eligibility and effective date of grant
Promotions / group company transfers / termination / retirement
17. Quantum
n’ number of employees
Irrespective of their nationality
Irrespective of being the employees of Holding/
Subsidiary/Associate Company
18. Pricing Criteria
ESOPs are freely price able
ESOPs can be issued at discount or premium
Different pricing can be done for different category of employees
Internationally Accepted methods are used in case of foreign
employees
19. TAX
TREATMENT
In the hands of
Employee
At the time of Allotment:
Taxable Value= FMV on the
date of exercise of options-
Exercise Price
At the time of transfer of
shares;
Taxable Value= Sales Price of
Shares-FMV of shares at the
time of Exercise
In the hands of
Employer
Shares issued on or after 1st
April, 2009 under the ESOP
Scheme- No tax Liability on
Employer/Company.
20. DEPARTMENT INVOLVED IN THE PROCESS OF ESOP
HR
DEPARTMENT
LEGAL &
SECRETARIAL
DEPARTMENT
ACCOUNTS
DEPARTMENT
22. OUR VALUE ADDED SERVICES
We at Corporate Professionals, provides a comprehensive solution
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OurWeb Application, is
specifically designed by keeping in view the regulatory framework
under which ESOPs Function.