ESOP – Are you ready to give employees shares in your company?

Under an employee stock ownership plan (or ESOP), star employees are offered a number of shares in their company.

This scheme ties employee success to that of the company and incentivises them in the long term.

But do you understand the mechanics of an ESOP?

Take the quiz to test your knowledge!

An employee stock option plan allows companies to attract and retain key talent by:

Incentivising employees to perform well, as their shares value increase as the company grows.

Offering a right to shares at the value when they are initially granted to employees.

Granting share acquisition progressively to allow employees to reap the value over time.

All of the above

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Startup

ESOP – Are you ready to give employees shares in your company?

An employee stock option plan allows companies to attract and retain key talent by:

True or False? In ESOP, equity granting is achieved through what is described as a “vesting” process

True or False? In addition to the vesting period, an employee’s contract can include a ‘probation’ period

What is not a step in share vesting?

True or False? An employee has the option to sell his/her shares

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ESOP – Are you ready to give employees shares in your company?

An employee stock option plan allows companies to attract and retain key talent by:

True or False? In ESOP, equity granting is achieved through what is described as a “vesting” process

True or False? In addition to the vesting period, an employee’s contract can include a ‘probation’ period

What is not a step in share vesting?

True or False? An employee has the option to sell his/her shares

Create Your Account Now

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Embracing the Agile Mindset: How can it help transform your organisation?

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Article of Association template

Areas of law every entrepreneur should know

Quiz: Digital marketing for startups – How ready is your company?

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Agile: Module Introduction

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An overview of change management and some useful tips

Innovation and its importance to your business sustainability and growth

Quiz: Is your company Agile-ready?

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