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?
All factors aside, for a soonicorn startup that I worked for, esops to cash equivalent was 2:1, for every 1L I gave up on cash, I could get 8L of esops(to be vested over 4 years, so effectively 2L per year)
You need to know if you have to exercise your options when you quit. Some companies have a time limit like you have to exercise your options within 6 months or so. Then you pay tax on imaginary capital gains which might go to 0.
Also always remember that X% of 0 is still 0.
Also, if the company has never done esop buyback in the past, does esop make any sense?
Have been granted esops recently. What are the critical points that I should be mindful of before signing the esop policy (apart from the regular - vesting schedule, exercise price, etc.)? Anything that I should take note of or ask parti...
Please share how your company esop policy is. Is it really valuable for employees or just used to create hype and retail talent. How many years can you exercise them after resignation? How did the taxation go if someone has been lucky e...
I am at a VC backed early stage startup. Have been offered Esops.l but have no clue on this. Can somebody explain to me how can I make money from ESOP by answering these-
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...