ESOP + Managerial Remuneration

This query is : Resolved 

02 July 2009 Dear All,

Would like to know in case of ESOP to Key managerial person, whether difference between allotment price and valuation price of shares incase of ESOP will be consider as managerial remuneration.

03 July 2009 The Difference between ESOP price and valuation price is the amount on which FBT is payable by the company. This difference will not be treated as managerial remuneration.

03 July 2009 Thank You CA B.Srinivasulu,

Could share with some material if you have on hand to support the conculsion.

That the difference will not be treated as managerial remuneration.


retgards,
Mitesh

21 July 2024 Employee Stock Option Plans (ESOPs) are a form of compensation where employees, including key managerial personnel (KMP), have the option to purchase company shares at a predetermined price. The difference between the exercise price and the fair market value of shares is crucial, and managerial remuneration includes all forms of remuneration paid to KMP. Legal opinions and guidance can help navigate regulatory complexities and ensure compliance with current norms.


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