Every company wants to retain its executives and key employees by rewarding them for their valuable contribution to the growth of the company. ESOP is one of the popular ways of rewarding such employees.
What is an ‘ESOP’?
‘ESOP’ is a scheme or plan or programme set up by a company for its employees. Employee Stock Options are options under which a company gives the right to its employees to purchase its shares at a discounted price. ESOP is a type of retirement and employee benefit plan which offers its employees, ownership interest in the shares of the company on fulfilment of certain conditions.
Read More :- Understanding Employee Stock Options (ESOP)