Employee Stock Option - ICSI Knowledge Portal：员工股票期权——ICSI知识门户.pptVIP

Employee Stock Option Scheme CS Khusbu Mohanty Meaning Employee Stock Option” means the option given to the whole-time Directors, Officers or employees of a company which gives such Directors, Officers or employees, the benefit or right to purchase or subscribe at a future date, the securities offered by the company at a predetermined price. It may be noted that the term employee includes permanent employee of the company working in India or out of India or a director of the company, whether a whole time director or not. Background Mr. Louis Orth Kelso from U.S.A recognized as inventor and pioneer of the Employee Stock Ownership Plan. He created the first ESOP Plan (Scheme) in 1956 for a closely-held newspaper chain where the retiring owners sold their shares to the employee. Indian Scenario  Indian Companies has accepted and adopted ESOPs in the early 90s when the IT Companies, Manufacturing Companies and the Companies engaged in the business of providing services has started coming with various ESOP Plans. Incentive Tool ESOP is used as an incentive plan for the employees, helps to retain the employees and to reduce the attrition rate. Legislative Framework Companies Act, 1956 SEBI (ESOPESPS)Guidelines, 1999 Eligibility A permanent employee Whole time Director, Part Time Director, Independent Director, Nominee Director. However, an employee who is a promoter or belongs to the promoter group and/or a director who either by himself or through his relative or through any body corporate, directly or indirectly holds more than 10% of the outstanding equity shares of the company are not eligible to avail ESOP. Contd… In case of nominee director, the contract/ agreement entered into between the institution nominating its employee as the director of a company and the director so appointed shall, inter-alia, specify the following: whether options granted by the company under its ESOS can be accept