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?