It is not necessary for Associate in nursing worker to exercise the choice once it vests with him. The worker will exercise the correct inside stipulated period.
ESOP is s system below that usually the staff area unit given a right to accumulate shares of the corporate that they’re operating. In a number of the cases the foreign holding/subsidiary company conjointly grants choices to the staff of the Indian subsidiary/holding company. Below such theme the staff area unit granted some rights referred to as stock choices to induce shares of the corporate at free or at concessional rate, at a planned value or the worth to be determined on the prefixed methodology, as compared to the potential market rate. Company formation in India
There area unit varied reasons that the staff area unit given such stock choices. The phenomena of a stock choices is a lot of prevailing in startup corporations that cannot afford to pay vast salaries to its staff however is willing to share the longer term prosperity of the corporate. In such cases the staff area unit given the stock choices as a part of the compensation package.