ESOP Archives - MyStartupEquity Blog

ESOP Accounting for Indian startups using the Graded Vesting method

Companies that follow Accounting Standards may choose either graded vesting method or straight-line method for option valuation for bookkeeping ESOP expenses. But, companies that follow Indian Accounting Standards (Ind AS)…

ESOP Management at Zetwerk

Zetwerk began in 2017 as an idea to organize the supplier database for large manufacturing companies, two years on it has morphed into a B2B platform for custom manufacturing with…

ESOP Accounting – US GAAP

There is a lot of misconception around the accounting treatment and the requirement of valuation reports and disclosures for Employee Stock Options. Accounting treatment is different for various jurisdictions and…

ESOP for Founders

Difference between ESOPs & Stock Appreciation Rights (SARs)

Stock Appreciation Rights or SARs are picking up momentum in India and you would have recently read about serial entrepreneur, Jiten Gupta’s startup Jupiter.money adopting Stock Appreciation Rights for their…

ESOP for Founders

How to give Advisor Equity in India?

Startups in India have many questions on how to give advisor equity, i.e. shares to advisors, mentors, consultants. First, up you must know that under the provisions of the Companies…

ESOP for Founders

#LetsTalkESOP | Stock Appreciation Rights (SARs)

In a webinar with MyStartupEquity, Siddarth Pai (Founding Partner & CFO of 3one4 Capital) spoke about the importance of equity grants in startups. Siddarth believes that Indian startups should consider…

What is Exercise Tax? How to calculate it

Exercise tax incidence arises only when an employee is granted ESOPs and he/she exercises these equity grants. Note that there is no tax implication during the vesting period. Upon exercise,…

ESOP for Founders

Who is eligible to receive ESOPs in India?

ESOPs are long term incentive schemes that are made available to certain employees as a gesture of faith and with a promise for outsized returns. While the employer can minimize…

ESOP for Founders

How to manage delayed vesting when paperwork is not in place

There are many instances where a new startup founder promises ESOPs to employees when they join, this is typically a verbal commitment or might even be captured on email –…

Complete Legal Overview on Sweat Equity Shares

With the government notification that came out on Tuesday night, the issue of ESOPs and “Sweat Equity” is back in focus. Financial news portal – Finshots has a good summary…