Employee Stock Incentive Plans (ESOP) consulting

In Workforce

We help organizations in designing, implementing and administering Employee Stock Incentive Plans.

Related topics Workforce Tax compliance

Our team of professionals help businesses effectively design, implement, communicate compensation structures and administer share-based compensation benefits (ESOPs) for employees based in India and across the globe.

Collaboration with our team also helps businesses adhere to global payroll, tax, social security and labour law regulations, as we use proven EY methodology to help organizations achieve objectives, while ensuring compliance.

We offer the following services to address every organization’s unique business situation:

  1. Employee Stock Incentive Plan design
  2. Employee Stock Incentive Plan documentation
  3. Industry benchmark study for Employee Stock Incentive Plan
  4. Implementation and employee communication
  5. Administration of Employee Stock Incentive Plan
  6. Accounting and valuation
  7. Regulatory compliance
  8. Tax advisory

Gain understanding and identify mechanism for delivery

  • Gain knowledge about:
    • Business imperatives and strategies of the organization
    • Objectives of Employee Stock Incentive Plan
    • Compensation and reward structure
    • Performance management system
  • Discuss and identify:
    • Suitable type of Employee Stock Incentive Plan
    • Route of delivery
    • Exit Mechanisms

Design Employee Stock Incentive Plan and develop grant entitlement matrix

  • Define design features – grant, vesting, exercise
  • Design model for linking grant/vesting to performance/other agreed criteria
  • Agree on framework and finalize grant entitlement matrix

Capture terms and conditions in the document

  • Detail terms and conditions in terms of
    • Eligibility
    • Grant date and pricing criteria
    • Vesting period
    • Exercise period
    • Exit mechanism
    • Retirement, transfers and resignations
  • Develop Employee Stock Incentive Plan related documents

Develop communication plan for the employees

  • Designing the literature for employee awareness of the Employee Stock Incentive Plan
  • Detailing the frequently asked questions (FAQs) on compensation structure for employees

Administration of Employee Stock Incentive Plan

  • Routine and recurring administrative support in managing the Employee Stock Incentive Plan
  • Reporting requirements 

Contact us

Like what you’ve seen? Get in touch to learn more.