An acronym for Employee Stock Option Plan, ESOP is no more an alien term in the Indian startup ecosystem. Earlier ESOPs were offered to reward and acknowledge the contributions of senior employees, now they are offered to reduce the fund-shed or to give employees a sense of ownership and, thus, a bigger responsibility. For starters, ESOPs refer to plans that give employees the right to purchase a certain number of the company’s shares in lieu of salary. This gives them a virtual stake in the company. The risk factor on the founder’s shoulders is also reduced a bit.
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