Let's assume that my CTC is 60 LPA, out of which 25 lakhs are ESOPS grant.
This means I get 25 lakhs worth of the company shares, which I can purchase at a lower price set by the company which is called the exercise price.
Some companies have exercise period too that you must need to purchase those shares within X months/years of leaving the company, else you will lose those ESOPs grants.
What I want to understand is when I am the one who is supposed to first spend money from my own pocket to buy those 25 lakhs worth of ESOPs, why is it a part of my CTC?
This comparison of esop policies should help - https://x.com/BeingPractical/status/1363352214559891456
I also understand that ESOPs are different than RSUs.
For RSUs you get the shares allocated to you (as per the vesting rules), and you don't need to pay any up-front cost to purchase those. If you meet the requirements of vesting period, you can sell those shares and get the money.
Hi Folks,
Can you help me with the difference between RSU and ESOPS ?
I'll share my understanding, requesting the community to help as well.
Assumption for comparison:
₹/$ 100,000 worth of RSU vs ESOPS vested of 4 years equal distri...
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