Just a small followup question, is there a huge diff bw ESOPs and RSUs?

ESOP grants employees the option to buy shares of the company. RSU grants shares to employees directly with restrictions.

Software Engineer

You need to pay money to convert options (ESOPs) to actual stock but RSUs are stock with constraints.

Software Developer

That's right, it is 5L per year. 
  
 Yes, after vesting period there isn't any ESOP allocation left unless you got follow-on grants due to performance or company policy

No wonder employess be jumping from company to company.

Hi, I am an incoming Fresher @ SF. I wanted to know how do ESOPs work. Like in the overall CTC they include them (about 20L worth) but then they say it's vested over four years. Wouldn't the CTC th...

Welcome to Personal Finance's Private Community

Hi, I am an incoming Fresher @ SF. I wanted to know how do ESOPs work. Like in the overall CTC they include them (about 20L worth) but then they say it's vested over four years. Wouldn't the CTC then actually be a quarter of what they include? Like only 5L?

Also after the vesting period, do the companies stop giving ESOPs? Then does our CTC basically become Base salary + Bonuses?

ESOPs! How do they work?

ESOPs! How do they work?- Grapevine

Welcome to Software Engineers's Private Community

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 ?

Should esops component  be mentioned in offer letter?

Welcome to Business Roles's Private Community

ESOPs is offered by an early age startup. What are the things I does be aware about? or ask the founders to clarify with me.

Human Resources

I have some ESOPs($17k total) at my current company(startup, initial stage), vesting over 4 years with a one-year cliff (25% vested after my first year, monthly after). I have completed 1.5 years here.

I'm not sure if they're actually worth anything(no funding rounds since last 2-3 years, founder is saying he will raise in next 3-4 months), and I'm worried about the taxes when I eventually redeem them. Also I dont know about the redemption process. Could someone explain how this whole ESOP thing work, what the tax implications are, and where I can find more information?

what all should I ask to my manager/HR as we dont have any portal/guide where I can see all these information.
these are the questions I have rn
how to track how much is vested?
how do I redeem them?
can I not redeem them this year, will they still be available to me in next financial year?

ESOPs are confusing

[Need help] I have 3 lakhs of Pine Labs ESOPs each year. Got this news yesterday where Neuberger berman has reduced Pine Labs valuation by 39%. Does this mean when I try to cash out 3 lakh ESOP, the actual value would be 39% lesser?

Welcome to Office Gossip's Private Community

Hello all! 
I am working as HR Head in a growth stage startup in Bangalore. So many people here talk about compensation, culture, growth etc. Happy to answer questions related to HR/Culture/Startups.

People & Culture Manager

Welcome to Product Managers's Private Community

I work in a fintech company. Revenue and growth wise we are good, we just got acquired by a large internet platform too. Also, last year has been a tremendous learning for me as well. I like being PM but looking to move out of my current industry (lending) as I want to explore other domains and I feel like my CTC here is somewhat low (18.5 + 1.5 bonus) considering my experience (around 4.5 years). My boss said that I will get ESOPS (around 10 lacs) which I can liquidate around 50% this year. Should I wait for my appraisal to complete (will happen around April) and look to switch or should I start preparing for interviews now itself?

Company is good but CTC pinches

Product Manager

Generally speaking, is ESOPs fully vested in 4 or 5 years? 
I am aware of 4 years vesting period which is common everywhere. However, the startup where I work decided to introduce ESOPs with a cliff period of 1 year (which is standard) and the remaining shares to be vested will be done in the remaining 48 months. That’s five years altogether. Also, there’s a clause that on termination of employment, the shares should be exercised without which they will be revoked. 
The CXOs say that it’s a standard YC template. Am I being lied to? 
Would it be right to say that this is not an employee friendly ESOPs?

ESOPs vested over 4 or 5 years?

Welcome to IT Company Discussion's Private Community

Current CTC - 10 Lakhs
New CTC - 20 Lakhs

Is this 100% hike?

May NOT be.

What if 20 Lakhs includes a 20% bonus (not in the previous CTC)?
What if 20 Lakhs includes 2 Lakhs of ESOPs (not in the previous CTC)?
What if 20 Lakhs includes allowances that are useless (not in the previous CTC)?

******

The term “CTC” is NO less than a SCAM in India.

I don’t know any other countries that use the term “CTC”, do you?

And that’s why in India, 
Your in-hand salary will always be MUCH lower than CTC, 100% always.

Let me repeat:
“Cost to company” is NOT equal to “Your Income”.

There is always a leakage. 

********

Companies will NOT change this practice in India.

But YOU can, so:

-STOP asking what my CTC is going to be?
-START asking what my “TAKE HOME” is going to be?

TAKE HOME matters the MOST!!

#copied

CTC vs Take Home

Program Manager

I am getting offered a 10L Esops for example, does that  simply mean i need to pay some amount  to get shares worth 10L of company at Actual Market Price?

I have got only RSUs until now so now idea how world of esops work and are they actual money?

Like If i’m at 40 CTC fixed and getting offer 48 fixed + 8L esops, am i getting 20% increment or 40% increment?

Explain Me like I’m 5 : What are ESOPs?

Let's assume youre stepping into your 5th grade. Parents tell you that they have 10 chocolates in the fridge and if you complete all the homework, pass exams with distinction and make them proud, they will give 10 chocolates and also extra.  
  
 So you work your ass off and kill your homework and exams. 
  
 If you have good parents, they will give you 2 chocolates per milestone [ESOPs buyback].  
  
 If you have good and rich parents, they will do as promised [company going IPO]. 
  
 Very common scenario - If you have bad parents, they will continue promising the existence of chocolates to motivate you but in reality there are no chocolates [company not doing buyback nor going IPO. ESOPs are just paper money with no value].

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)

Question on ESOPs

Analyst

What do you think? PM salaries look unpalatable to me now.

Someone is making 73L as a PM with 2 years experience

Product Marketing Manager

What's the value of your ESOPs when allotted to you and their worth now? Or they just melted like soap?

ESOPs or SOAPs??

Business Analyst

How do you understand that Esops alloted in ctc are good enough?
Do companies have them fixed as percentage of ctc (ex. 30% of ctc) or how does it work?

What are the questions i can ask to get a better understanding of the Esops?
One would be current valuation, last buyback time, what else?

Is there any good resource to understand this?

How to evaluate ESOPs?

Welcome to Indian Startups's Private Community

Let’s say current salary is : Fixed + Variable + ESOPs (over 4 years)

For 4 years you get total amount of ESOPs promised.

Now once the 4 years are over, do you renegotiate your salary with your company to ask for additional ESOPs yearly or like just continue with Fixed + Variable from year 4 onwards ?

What happens to your compensation once the ESOPs vesting period is over ?

Corporate Strategist

A friend of mine is being offered CTC of 1.7cr (including esops) for E6 position in their India team. Can someone who works there or knows someone at Coinbase confirm the comp range for this level?
Also, any reviews on the company, their India team would be very helpful.

Comp at Coinbase

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?

RSU v/s ESOPS

Please share the knowledge you've about these two!

ESOPs vs RSUs

Product Owner

Hi, I got an offer from a Series B startup and they are giving me 3000 shares of ESOPs vested over 4 years. Right now the value of each shares are worth $5 and has a potential to grow after new funding rounds this year. I feel 3000 shares is less and want to negotiate for more. 

In your experience can anyone tell me how much ESOPs (shares) have you received from new startups? And was it benefecial in the long run?

Any input is appreciated.

ESOPs! How do they work?

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