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.