Employee Stock Ownership Plans (ESOPs) are fundamentally rights given to workers of an organization for purchasing offers of the organization at a settled cost on the date of the give. ESOPs can be as Stock Option Plans, Phantom Equity Plans and Stock Purchase Plans.
ESOPs are the best and most habitually utilized instruments to hold first rate representatives in an organization. Aside from this, ESOP has different favorable circumstances like:
- It ingrains a feeling of Ownership and belongingness among the workers and can get representatives exceptionally enlivened and centered for their employments.
- It assists adjusting the enthusiasm of the chiefs to those of the proprietors.
- It is a non-money remuneration device to vie for the best HR at reasonable thought.
- It gives a chance to corporate to pay without a decrease in book benefits.
- ESOP is the most consistent universal device that is utilized for giving retirement advantages to representatives and as progression get ready for proprietors.