Business Advisory May 2023

Understanding ESOPs: A Complete Guide for Indian Companies and Employees

Everything Indian startups and employees need to know about Employee Stock Option Plans, including tax implications, vesting schedules, and what happens during M&A or IPO.

By RedeFin Capital 8 min read

Employee Stock Option Plans (ESOPs) have become a critical component of compensation strategy for Indian startups and technology companies. They align employee interests with shareholder value, help attract talent that might otherwise be unaffordable, and create wealth-building opportunities for employees who contribute to the company's growth.

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