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- NEXT DEFINITIONEuropean OptionsIt is an option which gives buyer or seller a chance to exercise the contract only at the maturity date.Read More
What is 'ESOP'
Definition: An employee stock ownership plan (ESOP) is a type of employee benefit plan which is intended to encourage employees to acquire stocks or ownership in the company.
Description: Under these plans, the employer gives certain stocks of the company to the employee for negligible or less costs which remain in the ESOP trust fund, until the options vests and the employee exercises them or the employee leaves/retires from the company or institution.
These plans are aimed at improving the performance of the company and increasing the value of the shares by involving stock holders, who are also the employees, in the working of the company. The ESOPs help in minimizing problems related to incentives.
Also See: Employee Benefit Plan, Employee Stock Options, Employees Stock Plans, Return On Investment, Provident Fund, Gratuity, Social Security Benefits, Insurance Schemes
- PREV DEFINITION
- NEXT DEFINITIONEuropean OptionsIt is an option which gives buyer or seller a chance to exercise the contract only at the maturity date.Read More
Related News
Purplle closes Rs 1,000 crore funding deal led by Abu Dhabi Investment AuthorityPurplle has also announced a Employee Stock Ownership Plan (Esop) liquidity programme and will offer liquidity of Rs 50 crore to its employees. Company cofounder and CEO said they will constantly innovate their technology to provide the best for their customer. Purplle is one of the fastest-growing retailers in the beauty and personal care (BPC) segment, having grown its GMV by four times over the last three years.
SBI General Insurance appoints Naveen Chandra Jha as MD & CEODuring the year ended on March 31, 2024, the bank infused additional capital of Rs 489.67 crore in SBI General Insurance Company Ltd. The company has also allotted ESOP (Employee Stock Ownership Plan) to employees and consequently, the bank's stake has decreased from 69.95 per cent to 69.11 per cent.
Nykaa grants 4.73 lakh shares under Esop schemeFSN E-Commerce Ventures, operating Nykaa, allotted 4,73,138 equity shares under Esop scheme. Shares valued at Rs 8.08 crore. Managing director Falguni Nayar foresees $90-billion market growth.
SaaS company AiDash launches first ESOP buyback plan for employeesThe company says the buyback, which comes on the back of its $58.5 million series C funding round, underscores its commitment to shared wealth creation.
Urban Company announces fifth Esop sale programme worth Rs 203 croreExisting investors Vy Capital and Prosus Ventures, and Dharana Capital, an offshoot of Vy Capital, will be purchasing a majority of these shares from both current and former employees
PB Fintech's top executives to offload marginal stakes; floor price at Rs 1,258Substantial portions of the proceeds from the sale will be used to make the payment of taxes on current and future ESOP exercises. ESOPs are subject to payment of taxes on exercise in addition to the payment of capital gain tax on the sale of shares. Post the sale Yashish Dahiya will continue to have a 4.83% stake and Alok Bansal will have a 1.63% stake in PB Fintech on a fully diluted basis.
Zomato shares fall 6% on ESOP headache but target prices rise up to Rs 280. Should you buy, sell or hold?Zomato Stock Price: Despite positive target price revisions from brokerages such as CLSA, Jefferies, Bernstein, and Elara, shares of foodtech platform Zomato experienced a decline of up to 6% to Rs 182.10 on Tuesday. CLSA raised the target price to Rs 248, Bernstein to Rs 230, Jefferies to Rs 230, and Elara Capital set the highest target at Rs 280 per share, all in response to the impressive Q4 results.
Zomato sees Esop costs rising on grant of stock options to Blinkit leadershipCosts incurred under the Esops head are non-cash expenses, and will rise in the ongoing fiscal “on account of grant of Esops to the Blinkit leadership team and senior employees,” the management said in a post-earnings call.
Esop non-disclosure triggers black money lawA number of resident individuals working in Indian subsidiaries and arms of offshore parents have recently received notices from the Income Tax (I-T) department which has pointed out amounts that either went undisclosed or untaxed or both.
Esops from foreign companies on taxman’s radarA number of resident individuals working in Indian subsidiaries and arms of offshore parents have recently received notices from the Income Tax (I-T) department which has pointed out amounts that either went undisclosed or untaxed or both.
