Employee stock option plan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2015 How to determine Exercise period, vesting period and exercise price in a private limited company at the time of issuance of ESOP?

Amol S Joglekar

Amol S Joglekar (Expert)
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15 January 2015 ESOP is always looked upon as the payment/incentive/bonus for those employees who desire to stay for a longer period with the company.
Keeping this view point, the period of EXERCISE, VESTING is decided. The price is again the function of as above....payment/incentive/bonus to employees.

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2015 How this period and price is calculated?

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Amol S Joglekar

Amol S Joglekar (Expert)
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15 January 2015 that is what i am trying to hint.....

the company has to consider its rate of attrition...and then fix the reward for the LOYALTY

It should be mutually beneficial....