ESOP clarification

So i got the ESOPs in my current company and now they want me to exercise it as it is mandatory to exercise the ESOP in a certain period of time. What will happen once I exercise it?? Also i am thinking of quitting the company so what will happen to the exercised ESOP if I leave the company?? Please give any resources to understand the complete what, how and when of the ESOPs and general summary regarding it

Truths about ESOP 101 After working in multiple fast growth startup’s and having been part of multiple buybacks as well as being in the startup ecosystem for a decade I want to put to bear my pov about creating wealth through ESOP. Like any other randomised event, ESOP also follows Pareto principle which means a very small number of people within the company ever make sizable wealth that they elevate to the top 0.1% of the country. The Pareto also applies with companies; significantly small minority of companies in India have employee friendly policies which enables an employee to create wealth. Most startup’s have dark patterns within their esop policy which either locks you in for insufferable durations or forces you to pay exorbitant taxes to gain the right to exercise your esops when you are leaving the company. Survivorship bias plays a huge role in enabling the narrative that esop is a great wealth generating tool leading to rude awakening for an employee after they join a company. This doesn’t mean you can’t make wealth, it just means don’t get carried away by narratives and take preventable errors in your career. Always talk to multiple people in startup’s and ask relevant questions to understand esop policies better. Like everything else optimising only for esop for wealth creation will mostly not result in it.

Hello All, I interviewed with a startup recently and some of their policies around esops was something I encountered for the first time in my career, so wanted the expert advice of the community on next steps. Surprise one: ESOPs will be allocated post probation period of 3 months and vesting starts from there and not the date of joining, I was surprised on this but upon discussion with the company POC I was given a reason of the legal fees involved, which sounds fair but the vesting schedule is it employee favourable? Surprise two: They shared an offer letter with only the fixed component and said ESOPs will be evaluated post completion of probation period basis performance. Upon further discussing in this I was informed that this is a standard format their VC(sequoia, a16z and elevation) have approved. Is this true because I asked around few of my friends and all of them said esops are an integral part of the startup compensation and all of my and their offer letters historically had esops mentioned along with their value. Wrt to point 2 an I asking too much or some practice has changed in the industary which I’m unaware about. Also esop value post probation evaluation, is it employee friendly as the employee is in non negotiable position, isn’t it ?

Hi, I have an ESOPs related question. Appreciate any inputs. Consider a Series B startup providing an employee with 5000 shares. After 2 years, 2000 shares are vested and exercised by the employee. The stocks were never liquidated because the company didn't conduct buyback nor went IPO. Now, assume the company lays off that employee after 2 years, - Can he still hold the vested and exercised 2000 shares? - If yes, then can he sell those stocks during future buyback even if he isn't an employee? - Will the company provide accelerated vesting for the remaining 3000 shares during layoff? (not mentioned on offer letter)

Have been granted esops recently. What are the critical points that I should be mindful of before signing the esop policy (apart from the regular - vesting schedule, exercise price, etc.)? Anything that I should take note of or ask particularly?

Hi Guys, what is the “Exercise event” for the ESOPs allotted by Indian startup’s? Note: Exercise event means when the vested ESOPs can be allotted. I have come across a couple startup’s which have a very sketchy Exercise event I.e 4 years after vesting of “all the allotted ESOPs” So I’m trying to figure out how other startup’s are doing it in BLR/Metro cities in India.

I am at a VC backed early stage startup. Have been offered Esops.l but have no clue on this. Can somebody explain to me how can I make money from ESOP by answering these- 1) Do I have to buy them post vesting period? If yes, what amount do I need to pay? Also will there be text on this purchase itself? 2)) When the company buys back from me assuming my vesting was over and I could hold them on, what's the amount I will get? I am assuming it's (no of options * current share price) - (no of options * strike price issued to me). Is that correct? If yes, how is the current share price calculated for non listed company? 3) Now when the company buys these, what's the tax I have to pay? I am trying to understand if availing options and selling options are different and if both have taxes 4) What happens in IPO? Who buys from me? Where can I sell? What price do I sell at?

I have some vested ESOPs. I want to buy the shares from a private company that granted the ESOPs. The ESOPs grant letter is paper based on company letter head. I wanted to exercise my partially vested options, I wanted to know a few things. Could the company play any delay tactics? Let us say I email them Today. What's ideally be the tentative timeline to excercise the options, given I have money to buy and hold the stock. If the valuation at moment is unknown, could it be bought at last known valuation?