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Corporate Law

ESOPs: Employees ko Equity Dene ka Legal Frame

January 10, 2026 · Admin

Startups employees ko ESOPs (Employee Stock Option Plans) dete hain, taaki salary kam ho sakti hai par upside bada mile. Option ka matlab turant share nahi; future me pre-decided price pe share lene ka right.

Legal side se:

  • Proper board/shareholder approval,
  • Scheme document with vesting schedule, cliff, exercise period,
  • Treatment on resignation, termination, death, IPO, acquisition,
  • Tax implications – grant vs exercise vs sale time.

Employees aksar sirf headline number dekh lete hain (“aapko 20,000 options milenge”), par yeh nahi puchte ki fully diluted cap table pe unka % kitna banta hai, strike price kya hai, exit realistically kab possible hai.

Well-drafted ESOP scheme talent attract karti hai; vague ya unfair terms later disputes, demotivation aur litigation tak le ja sakte hain.