Sweat equity v/s Employee stock option plan

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.

Thanks sir ji

Regards

Madhusudan Kabra

THANK U SIR

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.

Read more at: https://www.moneycontrol.com/news/planning/all-you-want-to-know-about-esop-espprsu_951518.html?utm_source=ref_article

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Ramalingam K, MBA, CFP,

Director and Chief Financial Planner,

Holistic Investment Planners

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