Unravelling ESOPs

Course Duration:
125 minutes comprising of 2 episodes

Course Background:

While Employee Stock Ownership Plan (ESOPs) were conventionally used as a tool to incentivise long-tenured senior management, recent trends indicate that ESOPs are actively forming part of compensation strategy.  One commonly sees start-ups use ESOPs as a way to incentivise its employees early across different levels, as a part of their growth, reward, and retention strategy.

There is no denial that ESOPs are commonly becoming large part of income and wealth for many executives.  However, as with most things in life, the rules of its taxation are nuanced and intricate.  When cross border ESOP situations arise, the tax and regulatory aspects become far more complex.  While using ESOPs as a compensation strategy, the employer and employee apart from the tax and regulatory aspects also need to keep in mind certain important financial considerations such as:

• Concentration risk management,
• Funding of the ESOP purchases and perquisite tax,
• Estate tax exposure management for ESOPs of US corporations, and
• Management of foreign currency conversion costs.

What shall the course cover?
Against this backdrop, Taxsutra is delighted to present to you a special course on “Unravelling ESOPs”. In this course, Mr. Vaibhav Sankla (Founder, Billion BaseCamp) has discussed the intricacies and nuances involved in the use of ESOPs.