Sie sind auf Seite 1von 7

Employee Stock Ownership Plan (ESOPs)

Introduction History Concept Need


1. Macro Principles 2. Micro principles 1. Productivity 2. Savings & Investment 3. HRM 4. Defence against hostile takeover

Types of ESOPs
Non-Leveraged ESOP Leveraged Issuance ESOP Leveraged Buyout ESOP

Legal Framework of ESOP in India Accounting Aspect Tax Issues for Employees and Companies
Share premium account Trust route ESOP for private unlisted companies

MBO vs ESOP
ESOP Benefit: Tax benefit, Liquidity MBO Benefits vs. ESOP: Higher valuation,

Greater ownership stake, Less annual paperwork, Intense regulatory scrutiny, Annual valuations, Potential audits

Advantages
Capital Appreciation Incentive based retirement Tax advantages Reduction of tax liability for co Recovery of previous taxes Loyalty of employees

Disadvantages
Fiduciary liability Liquidity Stock performance Expensive to implement Need Annual upkeep Excessive Leverage Complicated Accounting

Das könnte Ihnen auch gefallen