Employee Stock Option Plan

An Employee Stock Option Plan (ESOP) is a benefit that gives employees the right to buy a company's shares at a predetermined price in the future. This incentive aligns employees’ interests with the company's success. If the company’s stock price increases, employees can purchase shares at the lower set price and potentially sell them for a profit. Typically, options are granted with a vesting schedule, meaning employees earn the right to buy shares over time. ESOPs can motivate employees, retain talent, and provide a pathway to participate in the company's growth and value creation.