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ESOPS

Hi Folks, I wanted to understand few things related to ESOPS for unlisted companies. Let's say, A company(startup) is offering me a package of 20LPA as fixed component and 4L worth of ESOPS(25% vesting) each year. Consider the date of the above offer date as 1st April 2024 and share value is Rs100/- (1st April 2024) as per the company so ideally 4000 shares Since 20LPA is fixed component, I'll get the salary after tax calculation - all good here. On 1st April 2025 , what happens ? Assumption that share price is constant for one year and has not changed for better understanding. Ideally I get 1000 shares at discounted price? In general , how much discount is offered. If I have to buy at a discounted price, is it really beneficial from financial standpoint? If I'm buying the shares even at a discounted price, why is it a part of CTC since I would be paying it from my pocket? Requesting folks to help me with the clarification as this will help me in negotiations with future employment

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Jordon Gabriel

Startup

2 months ago

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Blair Gabriel

Stealth

2 months ago

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Isaiah Nadeen

Stealth

2 months ago

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