Category: Business

EMPLOYEE STOCK OPTION PLAN - SCHEME, SHARES, HOW IT WORKS, The main purpose to provide ESOP is to make the employees more committed towards the company and it also helps to retain employees. ESOP motivates the employees to take ownership of the company and be committed towards it for a long term and as well. Employees are eligible for this scheme when they complete a specified period with the company, as mentioned in the scheme of ESOP to claim its benefits. This period is called vesting period. After the completion of the vesting period the employees become eligible to purchase the specified number of shares of the Company as discussed or mentioned, at predetermined price. The duration of vesting period may differ company to company as per their policy.