Demystifying ESOPs: Founders' Guide To Building ESOPs
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India, Feb. 23 -- In recent years, the employee stock option plan, or ESOP, has emerged as a widespread practice among big corporate houses and startups, especially during the Covid-19 pandemic. Essentially a kind of employee benefit/profit-sharing plan, ESOPs are often leveraged to ensure retention or reward, and further ensure tax benefits for companies and their owners.
As a startup founder, it is essential to understand the benefits and caveats of ESOPs to align them with the company's financial and operational goals. Moreover, first-time entrepreneurs setting up new companies often allocate ESOPs to early employees to help build trust. They may also agree to join at lower salaries as ESOPs are likely to cement future gains. Even tho...
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