How an ESOP for Private Companies Works
Introduction Employee Stock Ownership Plans (ESOPs) may make you wealthy if you understand how they function. Employees, drivers, masseuses, warehouse workers, and others have become billionaires as a result of ESOPs. Many of these billionaires have been generated by well-known esop for private companies like Google, Facebook, Infosys, Zomato, Paytm, Oyo, and others. While the primary motivation for implementing such a plan is employee wellbeing, there are clear benefits for the business as well. This article explains what an Employee Stock Ownership Plan is, how it works, how it affects employees and employers, and how it operates in both unlisted and listed organisations. ESOP for private companies listed The SEBI rules have drawn a very fine line between an ESOP programme for a listed business and one for an unlisted one. Employee Stock Purchase Scheme is the name given to an ESOP Scheme for a publicly traded corporation (ESPS). Employee Stock Purchase...
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