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Difference between esop and esps??

dickench (not applicable) (33 Points)

28 November 2012

Is there any difference between Employee Stock Option Scheme(ESOS) and Employee Stock Purchases Scheme(ESPS)??

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Anil Sankar V (CA) (1877 Points)
Replied 28 November 2012

'Employee Stock Purchase Plan - ESPP'

A company-run program in which participating employees can purchase company shares at a discounted price. Employees contribute to the plan through payroll deductions, which build up between the offering date and the purchase date. At the purchase date, the company uses the accumulated funds to purchase shares in the company on behalf of the participating employees. The amount of the discount depends on the specific plan but can be as much as 15% lower than the market price.

'Employee Stock Option plan - ESOP'

A stock option granted to specified employees of a company. ESOs carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price. An employee stock option is slightly different from a regular exchange-traded option because it is not generally traded on an exchange, and there is no put component. Furthermore, employees typically must wait a specified vesting period before being allowed to exercise the option.

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Prachi Bansal (3129 Points)
Replied 14 March 2021

Can you please tell me whether there have been any new employee schemes related to healthcare and insurance due to the outbreak of Covid-19? I think that it is the need of the hour to introduce some schemes related to healthcare and safety for employees?