ESOP- [Employee Stock Option Plan]
- ESPO are becoming popular in India especially for executive in I.T firm.
- In this case, specific type of employee are allotted company share below the market rate.
- This allotment can be made to the employee as a bonus, payable to them.
- ESOP provide to any share of the company at concessional rate to the employee including mangers.
- The amount of share depends upon for payment-base on bonus-salary of employees.
- Generally employees are restricted from selling the stock for sometime. This restriction period is called as lock-in-period.
- The cost of shares is wholly deducted from the pay.
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