The flurry of ESOP Buybacks in India
ESOP buybacks allow employees to sell their vested ESOPs to the employer. Startups may choose to buyback the ESOPs at a premium under specific instances; for instance, when founders need…
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ESOP for Employees
20 posts
What are Stock Appreciation Rights (SARs)?
SARs are a form of bonus compensation given to employees that is equal to the ‘appreciation’ or increase in the price of the company stock over an established time period.…
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ESOP Management at Scripbox
The foundation stone of Scripbox was laid in 2012. The idea was simple – use proprietary algorithms to identify mutual fund plans for users and recommend a limited list to…
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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…
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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,…
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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…
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How does Sweat Equity work?
“Sweat Equity” shares mean equity shares issued by a company to its employees or directors at a discount or for consideration other than cash. In other words, it refers to…
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What is the difference between Sweat Equity & ESOPs?
“Sweat Equity” shares mean equity shares issued by a company to its employees or directors at a discount or for consideration other than cash. In other words, it refers to…
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What are Employee Stock Options?
Employees with ESOPs, therefore, become potential shareholders of the company. As per the stipulated time-frame defined in their ESOP scheme document, employees can actually buy the shares that were once…
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Evaluating ESOPs: Questions that CXOs should ask
Although most senior-level employees are offered stock options as a part of their overall compensation when they join startups, they don’t really know how to evaluate the equity portion of…
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