ESOP Consultant
Employees Stock Option plan (ESOP) is a plan where company awards stocks to employees based on there performance , duration of employment. ESOP option is no mandatory for employees its call to action. Means its call option, employee have right to avail ESOP. Objective of ESOP is to motivate & retain employees in company. Most of company issue ESOP in phased manner. Rather than giving ESOP to all employees a criteria is created. ESOP works as to save current cash flow Burdon, company issue esop at end of financial year to employee its an incentive to remain in company. Employees also get benefit for acquiring shared of companies at Nominal value so later on it can sell share and gain profit. Most of companies have success stories where employees gained good amount from ESOP option.
A N Bhutada & CO , ESOP Consultant in Pune, Mumbai, Nashik , Aurangabad , India provides all ESOP service under one ruff of covering ESOP consulting , ESOP Planning , Administration , ESOP Valuation , Legal Compliances , taxation & ESOP Trust creation services. We are export in ESOP planning & designing as per need to company, we make ESOP offering as per your requirement. We specialize in customizing each of the ESOP so as to enable achieving the desired objectives. Outsource your ESOP Work to us we are qualified Chartered Accountant who understand your object, financial impact , taxation impact and make it win win situation for company and employees.
ESOP Designing
EOSP designing can be termed a ESOP planning its first step where company thing for offering ESOP to employees. ESOP plan is financial document which have all ESOP details. ESOP should go hand in hand with the objective of ESOP. We as ESOP planning consult offer Assistance in formulating ESOP policy. Based on your requirement and our experience we designing and documentation of most appropriate ESOP plan suitable for company and employees. We advise on financial impact , benefits to employees, accounting , taxation etc. We prepare Option Scheme document, employee agreements, communication drafts, trust deed, FAQs etc.
ESOP Administration
Once ESOP Plan is prepared and executed, it become important. Our ESOP Administration services is Maintenance of employee-wise data for the Options granted. Keep updated information about stock option vested and unvested options. Execution of grant letters and agreements. Keep information of beneficiary/nominee of Stock. Managing ESOP life cycle and submit MIS reports to management on monthly / quarterly basis.
ESOP Trust Registration
ESOP Trust Registration formed as per Section 4 of Indian Trust Act 1982 for a lawful purpose. ESOP trust registration ensures that then ESOP option benefit to employees directly & fairly. ESOP Trust receives company shares either from fresh allotment or purchase shares form employees of company or existing shareholder sell shares to ESOP Trust. We as provide ESOP Trust registration services in Pune & Mumbai. We draft complete legal document for purpose of Trust registration. We also maintain annual record of esop trust.
ESOP Benefit to Employee
The ESOP benefits to employee one it is significant retirement benefit for employee if employees works for certain period of time in company , over then period value of stock also grows. ESOP is generally designed to motive employee to perform more and work in company for longer period. This motivates employees to work towards growth of company as they get long term benefit from ESOP. ESOP create ownership interest among employees to work together for company goals. ESOP brings more loyalty to employees.
Understanding Important Terms related to ESOP
Grant
Refers to the commitment made by the employer by issuing the ‘Letter of Grant’ informing concerned employees about their eligibility to avail ESOP.
Vesting
It is the process which gives an employee the right to own shares in his company over a period of time. The rights over these shares are non-forfeitable.
Exercise
The company, initially, grants an Option. If an employee decides to convert this option into shares, it is called ‘exercising’ the option.
Exercise Price
Also known as Strike Price, this is the price at which these shares are offered to the employees. It is usually below the current market price and is pre-determined. The employee has to pay the strike price and own the equivalent shares.
Exercise Period
After the vesting period, the employees are given some time to exercise the options granted to them. This is known as ‘Exercise Period’.
Shareholders Approval
Approval of shareholders by way of separate resolution required grant of option to employees of subsidiary or holding company or grant exceeding 1% of company
