An Employee Stock Ownership Plan (ESOP) provides employees with future ownership rights in the Company upon meeting vesting conditions and completion of the vesting period. It aligns employee interests with the Company’s long-term growth, serving as both an incentive and a retirement benefit. For businesses, ESOPs offer significant tax advantages, support seamless succession planning, and...
In India’s fast-growing startup and corporate ecosystem, attracting and retaining the right talent is not just an important- it’s a survival strategy. Employee Stock Option Plans (ESOPs) have been emerged as one of the most powerful and strongest tools companies in India now rely on. But simply offering ESOPs is not enough. What really matters...
Employee Stock Ownership Plans (ESOPs) in the U.S. are more than retirement tools—they give employees a stake in their company, aligning personal interests with growth and fostering loyalty and accountability. Established under Section 4975(e)(7) of the Internal Revenue Code in 1974, ESOPs have become a cornerstone of American employee ownership, driving engagement, retention, and cultural...
When terms like “amendment” or “variation” appear in the context of an ESOP scheme, the natural question is Are we talking about a regulatory change, or a change in the actual terms of the Scheme? The answer lies in distinguishing between: Regulatory or administrative updates, and Material changes in scheme terms like eligibility, vesting, or...
As multinational organizations expand their global talent pool, Employee Stock Option Plans (ESOPs) have emerged as a key incentive mechanism—particularly where a foreign parent entity extends equity-linked benefits to employees of its Indian subsidiary. This model, while popular, raises important accounting, indirect tax (GST), and transfer pricing considerations that companies must navigate to ensure full...
In today’s world, businesses are no longer restricted by boundaries, particularly when it comes to talent and staff retention. Employee Stock Ownership Plans (ESOPs) are increasingly being offered to employees across borders to recruit, maintain, and reward global teams. However, the rules governing ESOPs vary from one another. If your firm operates in both India...
In FY 2024–25, SEBI introduced a series of impactful changes that will reshape how listed companies manage and disclose Employee Stock Option Plans (ESOPs) and other equity-based employee benefits. These updates aim to strengthen transparency, enhance investor confidence, and align with evolving corporate governance norms particularly relevant for companies preparing for IPOs or focused on...
BluSmart Mobility: Background and Relationship with Gensol: BluSmart Mobility, founded in 2019 by Anmol Singh Jaggi, Punit K. Goyal, and Puneet Singh Jaggi, emerged as India’s first integrated electric ride-hailing and EV charging platform. It rapidly scaled operations in Delhi-NCR, Mumbai, and Bengaluru, developing one of the country’s largest all-electric fleets, supported by partnerships with...
India’s startup ecosystem is witnessing a significant surge in Employee Stock Ownership Plan (ESOP) buybacks. In FY 2024–25, over 3,000 startup employees benefited from these programs, with companies repurchasing vested stock options worth more than ₹1,450 crore (~$170 million). This trend is reshaping how startups attract, retain, and reward talent while managing financial and strategic...
Employee Stock Ownership Plans (ESOPs) are a prevalent tool used by companies in both India and Singapore to attract, retain, and motivate employees by offering them a stake in the company’s ownership. However, the taxation of ESOPs varies significantly between these two countries, affecting both employers and employees. ESOP Taxation in India In India, ESOP...
