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Voting Challenges in ESOP Resolutions:Why Institutional Investors Vote Against ESOP Resolutions and What Companies Can Do About It

Employee Stock Option Plans (“ESOP”) have long been a popular tool for companies to attract, retain, and motivate employees. The idea is simple: give employees a stake in the company’s ownership, and they will work harder and stay longer. On paper, it sounds like a win for everyone. But in practice, ESOP resolutions at shareholder...

Analysis of Newly Promulgated SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021

SEBI (Issue of Sweat Equity) Regulations, 2002 (“Sweat Equity Regulations”) and SEBI (Share Based Employee Benefits) Regulations, 2014 (“SBEB Regulations”) were notified on September 24, 2002 and October 28, 2014 respectively. The Sweat Equity regulations provided framework for issuance of Sweat Equity shares by listed companies and the SBEB Regulations provided framework to regulate Employee...

ESOP COST – DECODING THE MACHINERY

Share Based Employee Compensation Plans have become increasingly common and form an important feature of remuneration packages for Directors, Senior Executives and other Employees all over the world. With the advent of globalization and establishment of MNCs in India, the Employee Stock Option Plans (“ESOPs”) trend has taken the employee compensation practices by wave. The...

INSIDER TRADING NIRVANA – A COLD WAR

INTRODUCTION: With uncountable litigations, news coverings, front page articles, documentaries, we would think that people would finally learn that insider trading is illegal. Yet it is seen, from time to time, that a bubble of scandals erupt which causes havoc in public consciousness leading to lack of faith in regulatory system and ultimately causing the...