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Sweat equity v/s Employee stock option plan

Madhusudan Kabra (knowledge seeker) (1779 Points)

21 May 2010

What is the diffrence between sweat equity shares and employee stock option plan..

Regards

Madhusudan kabra

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4 Replies

santhosh (CA) (636 Points)
Replied 22 May 2010

Sweat equity is usually given to directors as consideration for some knowhow is obtained from them or some knowledge is obtained from them for some technical process which is useful for production or service. Its consideration otherwise than in cash for selling such a right or disclosing such right/knowhow.

But ESOP is common option given to all employees to avail the shares of the company at a low price.In abroad options form a part of pay package for executives.

Both are similar but not the same.

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Madhusudan Kabra (knowledge seeker) (1779 Points)
Replied 24 May 2010

Thanks sir ji

Regards

Madhusudan Kabra

Sachchidananda Ghosal (MBA(Finance) PGPBM-Banking & Insurance B.Com) (167 Points)
Replied 08 February 2011

THANK U SIR

Ramalingam K (Founder & Director - Holistic Investment Planners (P) Limited) (21077 Points)
Replied 12 May 2014

All you want to know about ESOP, ESPP and RSU

A good remuneration package would definitely enthuse and excite young professionals while stepping into the world of employment. Many of them would have been recruited from the campus while others might have come through the process of examination and interviews. Most would perhaps only be aware of the quantum of compensation that they are going to receive.

Regards

Ramalingam K, MBA, CFP,

Director and Chief Financial Planner,

Holistic Investment Planners

“Best Performing Financial Advisor Award” Winners from CNBC TV18

www.holisticinvestment.in

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