Employee Stock Option Plans (ESOPs)

Employee Stock Option Plans (ESOPs) are programs that give employees the right to purchase a company’s shares at a predetermined price, usually after a certain period or upon reaching specific goals. They serve as both a reward and an incentive, aligning employee interests with company growth. If the company’s value increases, employees can buy shares at the lower set price and potentially sell them at the current higher market price, earning a profit. ESOPs boost motivation, foster loyalty, and can help attract talented staff to the company.