REVIEW OF ESOP SCHEMES AND GRANT PRACTICES
A review of the present Plan is desirable in a dynamic eco system. It helps identify changes necessary to upgrade the Plan to give better results in the changed scenario. The need for making a new Grant, constraints on expansion of the equity pool, high burn rate, evaluation of alternative models, changes in regulations, Mergers and Acquisitions, public listing of the company, rectification of past inconsistencies and many such reasons could point to the need for a review.
Grants Practices – Benchmark and Align with Strategic Goals and Objectives
We review your current grant practices and processes to benchmark them with industry best practices. We study the Plan parameters of coverage, individual quantum, pricing, grant frequency, vesting conditions and schedule, and ESOP pool size, vis a vis market trends and give our recommendations to make the Plan more attractive to employees. We can guide you on options outstanding with separated employees and existing ones and help you sort out the pros and cons, costs, tax implications and other challenges of minority shareholding, after due diligence and recommendations.
Legal Compliances – Review and Modification of Plan Documentation to Ensure Compliance
We review your current ESOPs, grant letters, past compliances, resolutions, employee communications and statutory filings, and advise on any shortfall in legal compliances under applicable laws. We suggest modification in the Plan to synchronize it with the company’s objectives. Typically, privately held unlisted companies rely on us to prescribe safeguards to be used in their ESOP scheme.
Employee Communication – to Let Employees Know How the Plan Impacts Them
We assist in employee communication, FAQs, changes in grant letter/surrender letter/letter of undertaking for obtaining consent from Plan participants in regard of existing grants to enable modifications.