This document discusses employee stock ownership plans (ESOPs), including:
- The key stages of an ESOP including grant, vesting, exercise, and sale
- Factors to consider when designing an ESOP like number of shares to grant, strike/grant price, and vesting schedule
- Implementing an ESOP through steps like designing the plan, communicating to employees, and issuing grant letters
- Additional considerations for founders like their agreement, equity treatment if leaving, and more
The document provides an overview of ESOPs to help understand how they work and what goes into designing and implementing an effective ESOP for a company and its employees.
ESOPS for Startups by Ms. Neela Badami Kesava Reddy
ESOPSare crucial assets tools to reward employees and retain them by providing sense of ownership. They are probably the most valuable contribution that Startups make to the lives of employees who suffer low salaries and long hours while working in new Companies.As an entrepreneur you should know, What are Employee Stock Option Plans (ESOPS)? Importance of Employee Stock Option Plans? Whom to issue ESOPS? How to issue ESOPS? What are the Cost & Criteria to issue Employee Stock Option Plans? Benefits of ESOPSand Dos and Dont’s?
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.
ESOPS for Startups by Ms. Neela Badami Kesava Reddy
ESOPSare crucial assets tools to reward employees and retain them by providing sense of ownership. They are probably the most valuable contribution that Startups make to the lives of employees who suffer low salaries and long hours while working in new Companies.As an entrepreneur you should know, What are Employee Stock Option Plans (ESOPS)? Importance of Employee Stock Option Plans? Whom to issue ESOPS? How to issue ESOPS? What are the Cost & Criteria to issue Employee Stock Option Plans? Benefits of ESOPSand Dos and Dont’s?
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.
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.
Delivered to the Columbus chapter of the Society of Financial Service Professionals on April 13, 2017 by Kegler Brown's Tom Sigmund and Ted Lape of Lazear Capital Partners, this presentation defines and discussed the benefits of an ESOP (an employee stock ownership plan).
Although this presentation covers the basics of an ESOP, it details what they are used for, ESOP transactions, who is a good candidate, tax benefits, and ongoing ESOP considerations.
Informe sobre los sistemas de retribución flexible realizado a partir de encuestas a lectores de la publicación Employee Benefits y de los usuarios de www.employeebenefits.co.uk (en inglés)
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.
Muds Services:
Constitution of Trust
Formation of ESOP Plan
Identification & Appraisal of Eligible Employees
Valuation of Company
Creation of ESOP pool
Documentation & Granting of ESOPs
https://muds.co.in/esop/
This presentation preapred by LIC Official and i just upload it for public,who can get benefit from this presentation.LIC Jeevan labh is non market linked,traditional plan presented by LIC.This plan provides good returns with Insurance cover.
The National Pension Scheme (NPS) is an excellent instrument when it comes to investing for your future and tax saving for your present. For a detailed and in depth knowledge on how NPS can be a good option for you, view this presentation.
Objectives & Agenda :
The primary objective of Insolvency and Bankruptcy Code (IBC) is the resolution of distressed assets of the insolvent debtor in a time bound structured manner and to enable such insolvent entity to continue as a going concern. IBC emerges as a fast track mechanism in completion of insolvency proceedings and aims at maximising the value of the assets of an insolvent entity. The Supreme Court judgement on Essar Steel is a landmark judgement that affirms the principles of IBC. The webinar analyses the key aspects of the judgments delivered by all the judicial forums viz. National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT) and the Honourable Supreme Court in Essar Steel case.
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.
Delivered to the Columbus chapter of the Society of Financial Service Professionals on April 13, 2017 by Kegler Brown's Tom Sigmund and Ted Lape of Lazear Capital Partners, this presentation defines and discussed the benefits of an ESOP (an employee stock ownership plan).
Although this presentation covers the basics of an ESOP, it details what they are used for, ESOP transactions, who is a good candidate, tax benefits, and ongoing ESOP considerations.
Informe sobre los sistemas de retribución flexible realizado a partir de encuestas a lectores de la publicación Employee Benefits y de los usuarios de www.employeebenefits.co.uk (en inglés)
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.
Muds Services:
Constitution of Trust
Formation of ESOP Plan
Identification & Appraisal of Eligible Employees
Valuation of Company
Creation of ESOP pool
Documentation & Granting of ESOPs
https://muds.co.in/esop/
This presentation preapred by LIC Official and i just upload it for public,who can get benefit from this presentation.LIC Jeevan labh is non market linked,traditional plan presented by LIC.This plan provides good returns with Insurance cover.
The National Pension Scheme (NPS) is an excellent instrument when it comes to investing for your future and tax saving for your present. For a detailed and in depth knowledge on how NPS can be a good option for you, view this presentation.
Objectives & Agenda :
The primary objective of Insolvency and Bankruptcy Code (IBC) is the resolution of distressed assets of the insolvent debtor in a time bound structured manner and to enable such insolvent entity to continue as a going concern. IBC emerges as a fast track mechanism in completion of insolvency proceedings and aims at maximising the value of the assets of an insolvent entity. The Supreme Court judgement on Essar Steel is a landmark judgement that affirms the principles of IBC. The webinar analyses the key aspects of the judgments delivered by all the judicial forums viz. National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT) and the Honourable Supreme Court in Essar Steel case.
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Mirae asset midcap fund product presentation 2019 VijayKumarK40
An Open Ended Equity Scheme Predominantly investing in Mid Cap Stocks.The investment objective is to generate long term capital appreciation by investing in a portfolio of predominantly Midcap Stocks.
There is no assurance that the investment objective of the Scheme will be realized.
*Investment Framework of Mirae Asset Midcap fund *
Invest Predominantly (>65%) in Mid Cap companies (101-250th Company in terms of Full Market Cap).
The fund may also participate in other Indian Equities based on factors like relative valuations , Liquidity and market sentiments .
Aim to build a portfolio of companies having robust business models which have the potential to grow into tomorrow’s large caps.
Diversified portfolio with participation across sectors
Bottom-up approach –driven by value investing in growth oriented businesses.
Fund Manager : Mr.Ankit Jain
Benchmark : Nifty Midcap 100 Index (TRI)
Mirae Asset Midcap Fund is suitable for investors who are seeking
– More opportunities to identify inefficiencies in an Under researched market space.
– Higher Alpha in Midcap as early identification has possibly twin Advantages of (a) higher Earnings growth and (b) potential P/E Expansion .
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- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
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When listening about building new Ventures, Marketplaces ideas are something very frequent. On this session we will discuss reasons why you should stay away from it :P , by sharing real stories and misconceptions around them. If you still insist to go for it however, you will at least get an idea of the important and critical strategies to optimize for success like Product, Business Development & Marketing, Operations :)
Reflect Festival Limassol May 2024.
Michael Economou is an Entrepreneur, with Business & Technology foundations and a passion for Innovation. He is working with his team to launch a new venture – Exyde, an AI powered booking platform for Activities & Experiences, aspiring to revolutionize the way we travel and experience the world. Michael has extensive entrepreneurial experience as the co-founder of Ideas2life, AtYourService as well as Foody, an online delivery platform and one of the most prominent ventures in Cyprus’ digital landscape, acquired by Delivery Hero group in 2019. This journey & experience marks a vast expertise in building and scaling marketplaces, enhancing everyday life through technology and making meaningful impact on local communities, which is what Michael and his team are pursuing doing once more with Exyde www.goExyde.com
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
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Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
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4. piVentures2019AllRightsReserved
A chunk or pool of the company dedicated for
employees as remuneration (Employee Stock Option
Pool)
These ESOPs when exercised converts into common
shares of the company
At the time of exit, the shares are also acquired at a
price giving the opportunity to cash in for the
employees
Understanding ESOPs
14. piVentures2019AllRightsReserved
Seed/ pre-
Series A
Series A
Series B
Series C
Exit
FMV
Grant Price
Grant Stage
Discount @ Grant
Exercise Stage
Tax @ Exercise *
Sale Stage
Capital Gains Tax
on Sale
Exercise
* Tax laws vary in different countries. For example in India, this tax liability will get added to your
income as perquisite and taxed according to your income slab.
* Estonia, Israel, Canada are the most tax friendly countries from ESOP perspective
19. piVentures2019AllRightsReserved
How to determine #
Using FMV
Cash ESOP Shares
Market Salary 20 L INR
Cash Available 13 L INR
ESOP
Compensation
7L * 4 = 28L
ESOP Shares
28L/280 =
10000
Current FMV = 280 Rs / Share
This gives you a starting point. You can then use this to come up with
the appropriate number using other factors
Assuming ESOPs vest over 4 years
22. piVentures2019AllRightsReserved
Strike Price Curve
Strike price
$0.14
Strike price
$0.54
Strike price
$0.80
Strike price
$0.91
FMV $4
FMV $12
FMV $30
FMV $60
FMV $136
Compensation more than reward Reward more than compensation
Seed
Series A
Series B
Series C
Series D
25. piVentures2019AllRightsReserved
Bad Leaver / Good Leaver Scenarios
Typical Practices
Scenario Vested Shares Unvested Shares
Resignation
Remains with the
employee
Lapse
Retirement
Remains with the
employee
Lapse
Death / Incapacitation
Remains with the
employee
Accelerated Vesting
Leave for Cause Lapse Lapse
M&A
Gets bought by the
company / Acquirer
Depends upon the
acquisition terms*
* Accelerated vesting on M&A is also a practice. However, it can lead to hurdles in M&A
28. piVentures2019AllRightsReserved
Key Steps
Designing steps
Pool, Grant Price, Allocation, Exercise terms etc
Work with a lawyer to get an ESOP Policy
drafted
Communicate with Employees
Register your ESOP policy with the appropriate
authority and give grant letters to folks