Write a note on ESOPs


0
33 comments

ESOPs :

Advertisement

ESOPs are Employee Stock Ownership Plans where a trust holds and stock of the employers for the benefit of the employees. Primarily, the trust acquires the stock from the employer or from the shareholders of the employing company that has floated the stock in the market. Basically, it is a retirement plan that is loaded with tax advantages. When you retire, you would benefit like all the other employees from the stocks that the trust has held.

Stock Option means a right but not on obligation granted to an employee to apply for the company stock (shares) at a predetermined price. The scheme is generally called “Employee Stock Option Plan (ESOP)”. There are many reasons :

1.      It is a tremendous motivator and can get employees highly involved in their jobs and focused on corporate performance.

2.      It is vital tool to attract and retain quality employees, fostering in them long term attitudes.

3.      As a compensation tool, ESOPs offer rewards that can exceed the expectations of employees but are still affordable to the company as they are highly performance driven.

4.      Internationally, ESOPs are used for granting retirements benefits to employees and as succession plan for owners.

5.      Increasingly, sheer competition dictates setting up ESOPs for employees.

6.      Strategically, economically, financially or philosophically ESOPs are a win-win combination.

Advertisement
The following two tabs change content below.
MT UVA- University, Vocational and Affiliated Education for BMS

Like it? Share with your friends!

0
33 comments
MT UVA BMS

MT UVA- University, Vocational and Affiliated Education for BMS

33 Comments

Ask Us On WhatsApp
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format