Track ESOPs for Free
Track ESOPs and check the progress of your Employee Stock Ownership Plan for free at INDmoney!
How to track ESOPs with INDmoney?
Our Investment Tracker enables you to manage all your ESOPs in one place. Get accurate information about the vested and unvested ESOP balances along with the latest updates about all your other investments for free.
Step 1
Create your account on INDmoney with your phone number.
Step 2
Add your ESOP details to your account.
Step 3
Start tracking your ESOPs.
Benefits of tracking ESOPs with INDmoney
Before you start your tracking journey with us, make sure to know the benefits that you can avail from it. Check below.
Coverage of US companies
We will help you track the ESOPs of not only Indian companies but also those in the US.
Explore ESOP Options
You can check your vesting period and study the value of ESOP with INDmoney.
Tax
The taxes which will be applied to your ESOPs will be visible on INDmoney’s dashboard.
How does an ESOP work?
To know how ESOP works, keep reading below.
Allocation of ESOP
A company has to first decide to allocate ESOPs to employees. It defines the eligibility criteria and the number of shares which will be part of the ESOPs.
Vesting Period
ESOPs are kept in a trust for a certain period. This period is called the vesting period. An employee has to work for the company during this time to reap the ESOP benefits.
Buying and Selling Stocks After Vesting Period
After the vesting period is over, the employee can buy the stocks at a discounted price. Later, the stocks can also be sold as per the ESOP plan.
ESOP benefits for employees
ESOP plans offer the following benefits to employees.
Financially Rewarding
If the price of the company’s stocks is increasing, the value of the ESOP will also increase. Thus, ESOPs can be a very lucrative option for employees.
Employee Engagement
ESOPs align an employee’s interests with the company’s interests. Thus, an employee feels engaged in the company’s success.
Retirement Planning
ESOPs can translate into a good source of income after retirement.
Diversification of Investment
Holding ESOPs helps employees to diversify their investment basket.
Dividend Income
Companies provide a part of their profits as dividends to shareholders. So becoming a shareholder will also entitle an employee to earning dividend income.
Job Security
A company is unlikely to lay off an employee with an ESOP. This enhances the job security of the employee.
Key Takeaways
- Employee Retention: Offering ESOPs is a smart way for companies to try and retain employees. It encourages employee’s loyalty to an employer.
- Increased Motivation: When an employee has an ownership stake in a company, it is in her interest for the company to succeed. This improves employee motivation.
- Diversification: ESOPs help diversify the investment portfolio of an employee.
- Stock Ownership: As the company scales greater heights, employee stock ownership in the company becomes more and more lucrative.
- Creating New Leadership: ESOPs can slowly transfer ownership of the company to the next generation, thus passing on the baton.
Frequently Asked Questions
ESOPs are part of an employee’s compensation package. They represent potential ownership of the equity of a company.
It refers to the duration for which an employee will have to work for a firm before exercising the ESOPs.
Yes, ESOP is part of CTC.
Yes, they can be good for employees. If a company does well and its stock prices rise, then ESOPs will become highly lucrative.
It depends on an employee’s goals and mentality. ESOPs and salary serve different purposes.
Here are some key benefits of ESOPs for employers:
- Helps to retain employees
- Attract top talent
- Improves productivity
- Preparing the next generation of leadership
Employee ownership can make employees more committed to the firm, thus enhancing the company’s productivity.
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