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...
The listed entities are now required to make additional disclosures relating to ESOPs on its Website. Here’s a closer look at the significant insertions: As per Regulation 46(2)(za) of the SEBI(LODR) [Third Amendment] Regulation, 2024: Listed entities shall disclose Employee Benefit Schemes documents in accordance with SEBI’s SBEB & SE Regulations, 2021, subject to the...
ESOP’s have become a very attractive tool for companies these days, say it may be an Unlisted company or Listed Companies or Start-up’s. Nowadays companies are using ESOP as a Compensation tool to retain, attract, motivate their employees, and create a platform for them to get a benefit of their long -term association with the...
Insurance Regulatory Development Authority of India (IRDAI) has also identified a crucial link between the roles of KMPs and the excessive risk-associated to their position in Insurers, similar to the term of the private sector banks. To address this, the IRDAI mandated the establishment of robust guidelines to have a Board-approved remuneration policy within the...
Key Managerial Personnel (KMPs) and senior management in Non-Banking Financial Companies (NBFCs) hold pivotal roles in steering their organizations toward success. Their influence on the company’s direction and growth cannot be overlooked, as their personal goals often mirror the broader objectives of the Company. Recognizing the significant impact these designations have, the Reserve Bank of...
InvIT of Infrastructure Investment Trust is a trust registered with SEBI to carry out the activity prescribed under SEBI (Infrastructure Investment Trusts) Regulations, 2014. An InvIT raises funds by issuing units to investors and invests those funds primarily in assets in infrastructure sector whereas Real Estate Investment Trust (REIT) registered under REIT Regulations facilitate pooled...
Drive growth and inspire a motivated workforce by placing Employee Stock Ownership Plans (ESOP) as the forefront agenda for your next Board Meeting. The first question which comes to the mind is “WHY ESOP”? Employee Stock Ownership Plans (ESOPs) have emerged as a powerful tool for aligning employee interests with the company’s growth. Further few...
Background: Generally, Indian listed companies come up with the grant of ESOP after appraisal month, i.e. May/June. It helps to align rewards with recent performance of the employees. However, challenges arise in determining ESOP cost due to various factors like market volatility, vesting period and regulatory & tax considerations. Despite these challenges, careful consideration of...
ESOPs have been used by companies, both in India and internationally, to retain, attract, and motivate employees, and to create wealth for them, thereby aligning their interests with the company’s. Nowadays, many MNCs grant ESOPs to employees of their Indian subsidiaries or holding companies, whether based in India or outside India. There has been an...
