What are ESOPs and how do ESOPs work? | Employee Stock Ownership Plan explained

Описание: ESOPs are becoming an important part of salary compensation, especially in startups. They offer employees a stake in the company’s future, aligning incentives between employees and employers. For some, ESOPs have been life-changing, creating unexpected wealth when companies scale or go public. However, understanding ESOPs isn't always straightforward and employees often struggle to assess their true value.

Chapters
00:00 Introduction
01:01 What are ESOPs, and why do companies offer them?
01:50 How are ESOPs different from regular shares?
02:22 Are ESOPs included in CTC?
03:04 How do ESOPs work?
04:24 Key factors to consider before accepting ESOPs in your compensation package
07:04 What is exercise period?
07:34 Do I need to pay to exercise my ESOPs?
08:06 What happens to ESOPs if the company goes public?
08:47 What happens to ESOPs if you leave the company?
09:30 How are ESOPs taxed?
11:16 ESOPs granted by foreign companies—how do they work?
12:06 Closing

Here's more on ESOPs: https://qna.tax/t/employee-stock-owne...

#ESOP #EmployeeStockOwnershipPlan #startup #taxation

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