Vesting Criteria is one of the biggest levers available in an ESOP scheme to drive the right employee behaviour. It is also something that significantly impacts the level as well as pattern of charge to the income statement.
Despite this, we notice the majority of the Companies adopt the standard 4-year time-based vesting schedule for all their grants, across grades as well across various points of their growth journey.
Click on the link below to access our latest short presentation on How you can get the Vesting Criteria right?:
https://www.veritas-india.com/pdf/lets-get-the-vesting-criteria-right.pdf
The presentation is a 5-minute read and highlights various options available for vesting criteria, the advantages and challenges of the options and our recommendations on suitability of vesting criteria for various job levels.
Some of the themes you shall notice in the article are as follows:
|
|
|
|
Should you have any comments or thoughts or feedback, please feel free to share write to us. We would love to hear from you!
Disclaimer:The above content has been furnished solely for information and must not be reproduced or redistributed. It should be noted that we are not soliciting any action based upon it. Also, it does not constitute any recommendation. In particular, the information above is for general purposes only and is not an advice on employee stock option solutions valuations or preference of one scheme over another. The information given above is in summary form and does not purport to be complete. We have reviewed the above and in so far as it includes information or facts, it is believed to be reliable though its accuracy or completeness cannot be guaranteed.