Employee Stock Options (ESOP): FAQ Series (III)

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  • June 7, 2021

Welcome to the 3rd part of our FAQ Series on ESOP.

In this Series III, we are discussing the key terms like Grant, Vesting and Exercise which often are puzzling for Entrepreneurs as well as employees. We have also touched upon the procedural requirement for implementing any ESOP Plan. The key queries address in this part are:

  • ·         What is Grant, Vesting and Exercise of Options?
  • ·         Is there any limit (maximum or minimum) prescribed for grant of options to any employee?
  • ·         What is Vesting and is there any particular time prescribed?
  • ·         What are unvested options?
  • ·         When Option can be exercised?
  • ·         Whether ESOP Plan requires approval from Shareholders of the Company and how to change the terms of ESOP Plan?

The last part of the FAQ Series to follow shortly.

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