Understanding ESOPs: How Do You Offer This Benefit to a Candidate?

Can anyone share some insight on ESOPs? I am looking for information regarding offering this benefit to a candidate.

Hi,

ESOP (Employee Stock Ownership Plans) are companies or corporations owned in whole or in part by their employees. Employees are usually given a share of the companies after a certain length of employment or they can buy shares at any time. A corporation owned entirely by its employees will not, therefore, have its shares sold on public stock markets. ESOP companies often adopt profit sharing, where the profits of the corporation are shared with the employees. These types of corporations also often have boards of directors elected directly by the employees.

I think this will help out...

Regards,
Rahul S

There are many companies that give incentives by offering shares to the employees. This is used as a motivating tool for the employees, as they work with more dedication and authority when they have ownership of the company. Additionally, they tend to work well and make a profit so that the market value of the shares increases. As a result, the employees ultimately gain.
Regards,
Godhuli

ESOP is used by companies as a tool to retain employees by offering them shares at either the market value, the book value, or at a discount to the market price. These shares sometimes have a lock-in period as well, which prevents employees from being able to dispose of them. This tool is thus a very powerful monetary motivator, and employees do reap huge financial rewards at a future date.

- Jaideep