PeppyPretzel
PeppyPretzel

ESOPs! How do they work?

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?

17mo ago
Talking product sense with Ridhi
9 min AI interview5 questions
Round 1 by Grapevine
PeppyPretzel
PeppyPretzel

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

GroovyQuokka
GroovyQuokka

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

MagicalQuokka
MagicalQuokka

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

MagicalQuokka
MagicalQuokka

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

PeppyPretzel
PeppyPretzel

No wonder employess be jumping from company to company.

Discover more
Curated from across
Business Roles
by GoofyDumplingJupiter

Comp at Coinbase

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, thei...

Office Gossip
by WigglyMochiPeople & Culture Manager

AMA

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.

Software Engineers
by SparklyMuffinSoftware Developer 2

ESOPs are confusing

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 w...