Employee Stock Option Plan

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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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