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Employee Stock Option Plan

Employee Stock Option Plan

ESOP is one of the most prominent motivational tool widely used by many of the prominent employers world-wide to encourage their employees to continue with them and to contribute to the growth rate of the company and to enjoy a sense of ownership and belongingness with their respective organizations. At Artis we have a specialized wing to educate, coordinate, assist and implement the ESOP in an organization. The process of ESOP at ARTIS consists of following steps.

We will educate the Board of Directors and the management about the various aspects of ESOP, advantages and disadvantages, Limitations and restrictions, measures to be taken to protect the shareholdings of the promoters, methodology of the valuations while allotting the shares on exercise of the options and valuations and systems for purchasing the shares on separation of the employee from the company.

This stage is more specific and all the important factors such as number of shares to be allocated to the employees, type of the employees to be benefited by the plan, date of granting, date of vesting, vesting terms, vesting period, exercise price, exercise period, exit route for the employees etc will be designed and finalised. These numbers of the options to be granted to each level of employees to be designed and decided with care. It is also important at this stage to distribute the overall ceiling into certain number of grants based upon specific circumstances of an organisation. If not planned well, it might lead to over- ranting during the earlier periods with little left for future employees. The legal documentation required for the Scheme (Resolutions, Scheme, Agreement, etc.) is also drawn up at this stage.

Anything which is not communicated properly will have negative effects. This is the most important area of the entire scheme and we will help you to present the matter before the employees in a professional manner by stressing the point of sharing the ownership of a growing entity. Right information at right time is the core factor behind success of all plans.

Once all the documentations are completed and communicated to the eligible persons, we will assist you in implementation of the scheme . We will prepare ESOP files for each employees and each file shall contain the following documents.
a. Copy of the ESOP Plan and agreement.
b. Letter of offer.
c. Letter of granting of the options.
d. Letter of acceptance (format).
e. Letter of vesting of the Options.
f. Letter of exercising the options (Format).

We will provide support and assistance through out the implementation stage of the plan and clarify the doubts and queries of the employees. We will provide a contact person at our end and a toll free number for clarifying the doubts on a pro active manner. An internet based software can be provided to the organisation at an extra cost, to record and follow up the plan details, which can be accessible by the employees also.

You may reach us on ask@artismc.com to know more about this services.