ESOP for Employees Archives - MyStartupEquity Blog

5 questions employees should ask about ESOPs during an interview

Nothing improves the financial life of an employee more than owning equity (ESOPs) in a successful startup – equity provides non-linear wealth generation and financial security. Employees should ask pointed…

ESOPs 101: How do they work?

ESOPs are non-linear wealth creation mechanisms that essentially give employees the option to buy a certain amount of company shares either at market value or at a discounted price. An…

Top 5 things to check in your grant letter before signing on the dotted line

It might be unintentional but often some nuances and clauses that aren’t discussed are taken for granted (pun not intended). Remember to check these in your grant letter: Is the…

What are the ESOP tax implications in Singapore?

While startups leverage ESOPs as a currency to attract and retain top talent, employees think of stock options as a potential incentive to boost personal wealth. Generating ESOP liquidity, however,…

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…

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.…

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…

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…

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,…

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…