The 5 biggest challenges with designing and managing ESOPs
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The 5 biggest challenges with designing and managing ESOPs
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The 5 biggest challenges with designing and managing ESOPs
- 1. Topic: The 5 biggest challenges with designing and managing ESOPs Presented by: Harshu Ghate Co Founder and Managing Director ESOP Direct
- 2. Agenda Key Trends and Practices – in unlisted companies •Top 5 Challenges •Q & A 1 2 3
- 3. Key trends in ESOPs – unlisted companies Are ESOP goals achieved? The reasons Plans succeeded partially Employees covered Grant frequency
- 4. Expected benefit from ESOPs Vesting schedule Vesting conditions Key trends in ESOPs – unlisted companies
- 5. Exercise terms Liquidity terms How are Options with Separated employees handled? Key trends in ESOPs – unlisted companies
- 6. Frequency of communication with employees Grant acceptance practices Pain points in Plan management Key trends in ESOPs – unlisted companies
- 7. Top 5 Challenges in Designing and Managing ESOPs 1. Instrument structure 2. Plan documentation 3. Communicating “Value” 4. Managing Exercise process 5. Making ESOPs work
- 8. 1. Instrument structure Cash / Equity settled Whom to Grant Vesting conditions Quantum of Grants Dilution • At which stage to implement ? • Grants to non-employees / Consultants • Impact on Cap table
- 9. 2. Plan documentation Lose documentation Grant acceptance Legal contracts Best practices
- 10. 3. Communicating “ Value” What is “Value” ? Communicating Value Best Practices
- 11. 4. Managing Exercise process Separating employees Payments / Funding and Issue of shares Overseas employees Impact on Cap table
- 12. 5. Making ESOPs work - Communication - Transparency - Liquidity - Grant more to few - regularly
- 13. About Speaker: Harshu is the Co Founder and Managing Director of ESOP Direct. Having worked closely with Private and early-stage companies, he understood their wants and strategized the carve out of ESOP Ezee from ESOP Direct offerings. He is actively involved in productising the service, design of the platform, stitching up partnerships and alliances of complimentary service providers. You can reach out to Harshu at harshu@esopdirect.com Harshu Ghate Managing Director Disclaimer The materials and information on this presentation have been prepared or assembled by the Firm and are intended for informational purposes only. Any opinions expressed on or through this presentation are the opinions of the individual speaker and may not reflect the opinions or guidelines of the Firm or the Industry. ESOP ezee do not accept or assume responsibility for any other purpose or to any other person to whom this note is shown or in whose hands it may come. Contact us @ 020 - 27400500 / +91 80876 97674 info@esopezee.com For more ESOP queries: About US: ESOP ezee is a one-stop bundled solution to Design and manage the entire life-cycle of ESOPs in early stage and start up companies. As a long-term partner, we work with our clients to make ESOP successful.