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- NEXT DEFINITIONEuropean OptionsIt is an option which gives buyer or seller a chance to exercise the contract only at the maturity date.Read More
What is 'ESOP'
Definition: An employee stock ownership plan (ESOP) is a type of employee benefit plan which is intended to encourage employees to acquire stocks or ownership in the company.
Description: Under these plans, the employer gives certain stocks of the company to the employee for negligible or less costs which remain in the ESOP trust fund, until the options vests and the employee exercises them or the employee leaves/retires from the company or institution.
These plans are aimed at improving the performance of the company and increasing the value of the shares by involving stock holders, who are also the employees, in the working of the company. The ESOPs help in minimizing problems related to incentives.
Also See: Employee Benefit Plan, Employee Stock Options, Employees Stock Plans, Return On Investment, Provident Fund, Gratuity, Social Security Benefits, Insurance Schemes
- PREV DEFINITION
- NEXT DEFINITIONEuropean OptionsIt is an option which gives buyer or seller a chance to exercise the contract only at the maturity date.Read More
Related News
Capgemini launches new ESOP for 97% of employees in IndiaCapgemini has announced that most of its 1.7 lakh employees in India are now eligible for its 11th employee share ownership plan (ESOP). Employees with a minimum tenure of three months can participate, with investments starting at 100 euros. The plan covers approximately 97% of employees and includes a five-year lock-in period.
Cong questions ICICI's 'no salary paid' to Buch claim, asks why 'retiral benefit' non-uniformThe Congress on Tuesday questioned the ICICI Bank's assertion that it had not paid any salary or granted ESOPs to SEBI Chairperson Madhabi Buch after her retirement and asked that if the amount paid to her was her "retiral benefit", why was it non-uniform both in terms of its frequency and amount.
Market cap overhang a challenge for potential listing: PhonePeWalmart-backed fintech major PhonePe on Wednesday said the market cap overhang is a challenge for the potential listing of the company and can not go to the market based on the current numbers and market share. He also said the company plans to enter the European market in the next five years.
Reliance Retail awards Rs 351 crore worth of ESOP to leadership team ahead of IPOReliance Retail awarded ESOPs to director V Subramaniam, chief executive for grocery retail Damodar Mall, president and chief executive of fashion and lifestyle business Akhilesh Prasad, president and chief business officer of electronics retail Kaushal Nevrekar, group chief business operations Ashwin Khasgiwala and chief executive of fashion ecommerce platform Ajio Vineeth Nair.
Tata Digital rolls out Esops for its senior execs to push performanceTata Digital has launched a new employee stock option plan (Esop) for the top deck under chief executive Naveen Tahilyani amid significant turnover in the company's senior leadership. It is following new-age companies like Flipkart and Razorpay that employ Esops as a retention tool and a wealth-creating method for employees.
Tata Digital launches new Esop programme for its senior executivesTata Digital introduced a fresh employee stock option plan for its senior executives, approved at the recent annual general meeting. The initiative, led by CEO Naveen Tahilyani, is designed to encourage a performance-based culture. The plan includes a minimum vesting period of three years and aims to increase revenue and improve consumer experience.
Zaggle Q1 Results: Cons PAT jumps multi-fold to Rs 16.7 croreSaaS fintech platform Zaggle Prepaid Ocean Services on Tuesday reported a multi-fold rise in its consolidated net profit to Rs 16.7 crore in the June 2024 quarter. It had posted a net profit of Rs 2.05 crore in the year-ago period.
Big LTCG gains for startups staff holding Esop in secondary dealsThe reduction in long-term capital gains (LTCG) tax on unlisted securities announced in the Union budget stands to benefit startup staffers holding employee stock option plans (Esop). Founders and tax experts told ET that employees will gain if their shares are bought by an investor during a secondary funding round.
Strong momentum in new deals, improving utilisation likely to help Persistent to retain high growthThe stock of Persistent Systems staged a recovery on Monday with nearly 4% gain after losing over 6% on Friday following a sequential fall in net profit and contraction in operating margin for the June quarter. A ramp up in large deals, H1B processing costs and expenses towards ESOP took a toll on profitability.
Compensation gap between CEO & median employee widens in India Inc from pre-pandemic years, finds ET studyAn ET study identified the widening gap in compensation between CEOs and median employees in 35 major Indian companies post-pandemic. Companies such as Hindustan Unilever, Infosys, and Tata Steel witnessed a significant increase in CEO to median pay ratios from 2019-20 to 2023-24 due to higher variable pay, bonuses, and ESOP-linked earnings, with ITC's ratio rising to 400:1 in FY24. Conversely, firms like Nestle and Bajaj Auto saw reductions. Modest median pay hikes and an abundance of low-cost entry-level resources impacted lower medians. Lateral hiring played a role in pay structures. Shriram Subramanian from InGovern attributes the trend to companies going global. Firms like Grasim Industries and HDFC Life Insurance also saw increases. Shareholders demand performance-linked CEO pay and fair wage practices.
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