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EMPLOYEE STOCK OPTION SCHEME

ESOP is an Employee benefit Plan which makes the employees of a company owners of stock in that Company.
ESOP is one of the way by which a Company may reward its employees by granting them an option or choice to buy the shares of the Company in the future date at the predetermined price which is generally lower than the market price.

GOVERNING LAWS
ON LISTED COMPANIES

1. SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme), Guidelines, 1999 2. CBDT Circular No. 9/2007, dated 20-12-2007

WHY ESOP??
To attract, reward, motivate and retain employees
for high levels of individual performance and for unusual efforts. To improve the financial performance of the Company, which will ultimately contribute to the success of the Company Companies grant an option to employees to acquire shares of their employer company over a period of time at a reduced price or nil price. Therefore ESOP is primarily a kind of incentive to hold the employees to the company's fold.

OBJECTIVES

Link personal wealth creation to organizational wealth creation


Attract and retain talent at the start-up / growth stage Promote employee ownership culture Industry trend Employees satisfaction with no outflow of money.

ROUTES OF ESOP

Trust Route

Direct Route

POLICIES TO FRAME ESOP SCHEMES


Under the present Regime, The company has freedom to specify the lockin-period for the shares issued in pursuance to the exercise of the options There shall be a minimum period of 1 year between the grant and vesting of options. Eligibility of new joinees and effective date of grant of option should be mentioned Promotions / retirement

DEPARTMENTS INVOLVEDIN THE PROCESS OF ESOP

HR DEPARTMENT

LEGAL & SECRETARIAL DEPARTMENT

ACCOUNTS DEPARTMENT

Companys offering ESOPs

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