What is the meaning of ESOP?

ESOP- [Employee Stock Option Plan]

• ESPO are becoming popular in India especially for executive in I.T firm.
• In this case, specific type of employee are allotted company share below the market rate.
• This allotment can be made to the employee as a bonus, payable to them.
• ESOP provide to any share of the company at concessional rate to the employee including mangers.
• The amount of share depends upon for payment-base on bonus-salary of employees.
• Generally employees are restricted from selling the stock for sometime. This restriction period is called as lock-in-period.
• The cost of shares is wholly deducted from the pay.