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RSU v/s ESOPS

Hi Folks, Can you help me with the difference between RSU and ESOPS ? I'll share my understanding, requesting the community to help as well. Assumption for comparison: ₹/$ 100,000 worth of RSU vs ESOPS vested of 4 years equal distribution from 1st Jan 2024. RSU: Since these are given for listed orgs, ₹/$ 25,000 worth of stocks are vested every year starting 1st Jan 2025 , 1st Jan 2026,1st Jan 2027 ,1st Jan 2028. ESOPS: What happens on 1st Jan 2025 ? Does the employee need to buy stock options worth ₹/$ 25,000 from his own pocket. ( I know they are given based on current valuation divided by number of shares plus some discount and FMV Stuff) Main point here is , incase of ESOPS whatever is stated at a part of compensation, employee need to shell out of his pocket? Is there anything I'm missing?

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tenxengineer

PhonePe

19 days ago

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ExemplaryMelon

Oracle

11 days ago

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KoolCoder

Credit Suisse Group

19 days ago

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