What is the meaning of Sweat Equity Share?


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Sweat Equity Share

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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.

 

 

 

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