Preview

Esop

Good Essays
Open Document
Open Document
1767 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Esop
EMPLOYEE STOCK OPTION PLANS

Employee Stock Option Plans (ESOPs) & Employee Stock Purchase Schemes (ESPSs) are employee benefit plans, which makes the employee of the company owners of stock in that company.
Stock options are the instruments that are offered to employees, allowing them to buy a certain number of shares in the company at a specific price. This price could either be lower than the current market-price of scrip-in which case their gains are immediate-or the same, whereupon future jumps in the share-price will show up as profits for them. There has to be a gap between the announcement of the ESOP and its coming into effect. You also have the freedom to specify how many shares an employee gets, which employees get them, and when the ownership is actually transferred.
ESOPs & ESPSs are unique employee benefit plans and are fast replacing cash incentives as a method to reward and retain employees.
The spirit of ESOP is that it would give the employees a share in the wealth of the company and infuse a sense of ownership & thence loyalty. This helps retaining talented and skilled employees, especially in today’s scenario when the employee turnover and churn is high. It also improve the productivity and performance of the Employees.

The scheme extends to eligible employees in accordance with the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme), Guidelines. The board of directors of the Company would decide the entitlement of Employees based on his/her level, grade and seniority

THE MAIN OBJECTIVES OF THE SCHEME: • An incentive to the Employees for achieving the Company’s medium/long term goals. • An incentive to the Employees to maintain a long association with the Company. • Motivation of Employees. • Employees’ participation in shareholding of the Company. • Bring long-term value to the shareholders. Motivate Employees to drive Company’s performance.

As per

You May Also Find These Documents Helpful

  • Good Essays

    Hrm 531 Week 3 Quiz

    • 862 Words
    • 4 Pages

    The company changes the way executive stock options are handled, with all options vesting after 2 years rather than having 20% of the options awarded vest every 2 years over a 10-year period.…

    • 862 Words
    • 4 Pages
    Good Essays
  • Good Essays

    which will set out the basis of employment incentives for the next 5 years. Under the contract, the company will…

    • 1369 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Case 3 Compensation

    • 213 Words
    • 1 Page

    employee share options on January 1, 2010. The awards have a grant-date fair value of…

    • 213 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Walgreens has a stock compensation plan that gives non-executive employees the opportunity to purchase common stock over a ten-year period upon the purchase of company shares, subject to certain restrictions. The share-buy-procedure is through cash purchase or loans made by eligible employees.…

    • 1077 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Publix Business Audit

    • 1037 Words
    • 5 Pages

    By offering stock options to employees this allows them to become partial owners of the company and as a result encourages them to be more efficient. Knowing that the employee is a stakeholder in the company also motivates an environment in which employee ownership creates satisfaction with job responsibilities. George Jenkins recognized the social responsibility that philanthropy is only one focal point for the vision of his company. His transference from traditional philanthropy to a strategic…

    • 1037 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    HOMEWORK ACC

    • 349 Words
    • 2 Pages

    This is a common method used by corporations to compensate executives. The presumption is that executives will work harder since they want their own stock to rise in value and, therefore, have the best interests of shareholders in mind. Employees with stock options need to know whether their stock is vested. This means the stock will retain its full value even if they are no longer employed with that company.…

    • 349 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    help to keep employees happy and will reduced the amount of turnover. This will lower…

    • 2272 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Enterprise Rent-a-Car

    • 684 Words
    • 3 Pages

    Enterprise used profit sharing plans with their employees, higher the branch profitability higher the profit employees used to get. Hence this played as a motivator in terms of growing hard work, dedication and devotion within employees towards their jobs.…

    • 684 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Essa

    • 8267 Words
    • 34 Pages

    Alimentary System 1.1 – The burden of GI diseases • List the names of the organs of the alimentary tract • Mouth and Oesophagus • Stomach • Liver • Biliary system • Pancreas • Small intestine (consisting of duodenum, jejunum and ileum) • Large intestine (consisting of colon, rectum and anus) • Describe the symptoms and signs of alimentary tract disease Symptoms: General: • Anorexia • Weight loss • Anaemia Upper GI: • Haemotemesis (vomiting blood) • Melaena (blood in the stool, black as partially digested) • Nausea and vomiting • Dysphagia (difficulty swallowing, food gets stuck on way down) • Odynophagia (pain on swallowing) • Heartburn, acid regurgitation, belching • Chest pain (heartburn, oesophageal reflux) • Epigastric pain Liver and biliary: • Right upper quadrant (RUQ) pain • Biliary colic • Jaundice (accompanied by icterus – yellowing of the sclera)…

    • 8267 Words
    • 34 Pages
    Powerful Essays
  • Good Essays

    Employers must provide access to either a company pension scheme or a stakeholder pension scheme to their employees.…

    • 4046 Words
    • 17 Pages
    Good Essays
  • Satisfactory Essays

    The essa

    • 673 Words
    • 3 Pages

    2. The examples of animism that relates to hunting and agriculture were that hunting was a religious pursuit in which the hunter saw the animal as a fellow creature with a similar spirit, therefore a hunter prayed to the spirit of the animal before the hunt. only those animals that were absolutely needed were killed. After the hunt, one asked the animal for forgiveness. For agriculture Native Americans worshiped the soil, plants, trees. Plants, like animals are thought to have spirits and are treated as persons by many Native Americans.…

    • 673 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    The call center will implement the policy and procedures, as-well-as cross-training, stress training so that all staff members are working as teams in receiving calls, taking care of customers that are not satisfied, to doing the paper work. Every employee will have the necessary training to make the call center a great place to work, and be the top call center. Effective team training reflects general principles of learning theory, presents information about requisite team behaviors, affords team members the opportunity to practice the skills they are learning, and provides remedial feedback. Team Dimensional Training (TDT), which resulted from the TADMUS program (Cannon-Bowers and Salas 1998). TDT addresses team-related knowledge and skills, provides practice in briefing and debriefing, and trains trainers and team leaders to evaluate and critique team skills (Tannenbaum, Smith-Jentsch, and Behson…

    • 806 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Essau

    • 1389 Words
    • 6 Pages

    I reside in the state of Florida and I purchase my groceries at a couple of stores, one of them is called Publix and the other one is Wal-Mart Marketplace.…

    • 1389 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Employee assistance plans (EAPS) can reduce cost of several other benefits such as medical/dental, WSIB, EI. EAPS include programs such as counselling and/or treatment substance abuse, legal problems, marital and or family. These programs can reduce the costs of other benefits by helping to work out some of the above issues before more serious medical problems arise. For example if an employee has a problem with drugs and it goes untreated the employee continues to use drugs while at work, while under the influence of drugs falls off a platform and breaks a leg, and smashes in his face. That employee now needs medical care to cover the cost of surgery and hospital stay and rehabilitation therapy, dental costs to fix his broken teeth, WSIB to cover the lost wages, EI to cover long term care leave because this person is unable to return to full…

    • 1372 Words
    • 6 Pages
    Good Essays
  • Good Essays

    essat

    • 914 Words
    • 3 Pages

    The literacy narrative, “Mother Tongue”, by Amy Tan, is about the different kinds of Englishes which exist in Tan’s world and how she went against the grain to become a successful writer using the same kinds of Englishes she once despised. Tan recounts how she coped with communicating in a simplistic manner of English with her not so fluent mother, then on the other hand, learning to develop and hone her English skills in school. As a teen, Tan, under the orders of her mother, pretended to be her own mother on the phone because few people were able to understand what little English her mother was able to speak. Her belief that growing up with the broken English her mother used was a detriment to achieving high test scores on her English exams. However, Tan challenged herself by forgoing the stereotypical route of science and math expected in Asians and became an English major. Working through several drafts of her first major project, Tan was able to construct her breakthrough novel The Joy Luck Club with the help of her mother and the different kinds of Englishes she grew up with.…

    • 914 Words
    • 3 Pages
    Good Essays