ESOPS
Hi Folks,
I wanted to understand few things related to ESOPS for unlisted companies.
Let's say, A company 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
Thanks 🙏
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