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.


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details