What is the meaning of Sweat Equity Share?

Sweat Equity Share-

• This shares are offered by the management to the employee of the organization.
• Such shares are given for providing better service to the organization.
• It enables to the company to create goodwill among employees.
• It provide stock option scheme after approval from Board of Directors.
• It determine on the basis of lock-in-period, if any, for the share given to the employee.
• It helps the company for maintaining better labour management relationship.
• It also enable the company to retain efficient employees.
• Employees are responsible to get both salary and dividend both on their share.
• But some employee in general dislike this idea because they prefer wages instead of ownership.