QuirkyPenguin
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
7mo ago
Talking product sense with Ridhi
9 min AI interview5 questions
SnoozyPotato
Stealth7mo
true value of esops is only when there is a buyback or an acquisition.
On buying shares at discounted price
My friend holds a decent amount of esops in zomato. he exercised it at 75 rupee. look at the price now.
If the company has a history if mass layoffs don't have a big amount in esops.
QuirkyBiscuit
Stealth7mo
@grapejuice yes but major are shit
QuirkyBiscuit
Stealth7mo
idk how but depends upon performance
Discover more
Curated from across
by QuirkyPenguinOracle
RSU v/s ESOPS
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 distri...
by GoofyPotatoSoftware Engineer
I need help in understanding ESOPs allocation and exercise.
Let's assume that my CTC is 60 LPA, out of which 25 lakhs are ESOPS grant.
This means I get 25 lakhs worth of the company shares, which I can purchase at a lower price set by the company which is called the exercise price.
Some compani...