Megha Gala 
The great migration has begun in the country. Indian-founded but overseas-headquartered start-ups are mapping their way to India. These may be attributed to a favorable environment created by government initiatives, the maturity of Indian markets, and recent regulatory changes on round-tripping. Companies like Pepperfry, PhonePe and Groww recently moved their headquarters to India. Similarly, fintech […]
In today’s fiercely competitive business landscape, where building a successful company is just the beginning, the race to attract and retain top-tier talent has become a global strategic imperative. Stock Appreciation Rights (SARs) have emerged as a popular instrument for employee/contractual employee compensation in India, especially within the growing startup ecosystem. SARs offer employees, etc., […]
Stock Appreciation Rights (SARs) are generally used in conjunction with ESOPs, as it is important to understand life cycle of SARs, taxation of SARs and difference between SARs and ESOP, before the employer rolls out incentive plans for employee. Stock Appreciation Rights is a global way of rewarding employees. SARs are increasingly seen in India […]
Introduction In the ever-evolving landscape of startup funding, there’s a growing trend where angel and seed-stage investors or venture capitalists encourage founders to establish Employee Stock Option Plans (ESOPs) before investing in them. This shift in investor demand has given rise to a common challenge for the founders to agree to create ESOP pools during […]
Employee Stock Option Plans (ESOP), is a widely adopted methodology used by modern startups, notably established in Silicon Valley by companies like Google and Facebook during their initial stages. The success of this strategy has been mirrored in the Indian market by companies like Flipkart, Citrus Pay, and many other startups. When these startups made […]
The Mumbai Tribunal in the case of Tata Sons Limited (TSL) held that reduction of share capital of the company by way of cancellation of shares amounts to extinguishment of the right on the shares. It amounts to ‘transfer’ within the meaning and scope of Section 2(47) of the Income-tax Act, 1961 (the Act) for […]
Employee Stock Option Plans (ESOPs) have proven to be effective in retaining a talented workforce, preserving cash flows, increasing productivity and achieving enhanced profitability globally. Cross-border ESOP structures may be explored by various global businesses already established in India, as well as by investors intending to establish a greenfield presence or acquire operating businesses in […]
Employee Stock Ownership Plan (ESOP) provides an opportunity for employees to become part owners of stock in the company they work for, at a discounted price. By embracing ESOPs, Family-owned businesses (FOBs) can foster a thriving work environment where employees truly feel invested in the company’s achievements. This often encourages employees to be a part […]
ESOPs are a simple and effective method for fostering employee engagement in the company. ESOPs have proven to be a valuable tool in the startup ecosystem, motivating top talent and promoting employee retention. The statistics further validate this trend, with data from Inc42 Plus indicating that in 2022, Indian startup employees reaped over $196.5 million […]
Employee stock option plan (ESOP) are liquid assets for listed companies as employees can see their value or wealth created. In the case of Startups or unlisted companies, ESOPs cannot be sold in an open market. To mitigate this problem, many startups have started buying back the ESOPs issued to their employees, thereby providing them […]
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