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What is ESOP

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What is ESOP

Posted by Maya Maya 8 years, 3 months ago

CBSE > Class 12 > Accountancy

2 answers

Amar Kumar 8 years, 3 months ago

Employee stock options ESOP:It is a measure to strike a chord with the good employees (Permanent Employees and Whole-time Directors) by offering them with company’s equity shares or stock option, and at the same time making them to stay with the company for some more years by providing them the right to exercise the share subscription in future.

ESOPs are widely used as tools for creating wealth for employees as also motivating them to continue working for the Company. This also helps cash crunched company by warding off the immediate payment of bonus/ other benefits.

In ESOP, employee is allowed shares at very low price then the fair market value of share
i.e. MP= Rs.200 but employee only has to pay say Rs. 5.

Maya Maya 8 years, 3 months ago

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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Posted by Mohd Aman Mansoori 1 year, 8 months ago

CBSE > Class 12 > Accountancy

0 answers

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

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Posted by Palak Sharma 1 year, 8 months ago

CBSE > Class 12 > Accountancy

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