ESOP & Sweat Equity: Most Prevalent & Contemporary Modes for Rewarding Employees
The management of the newly incorporated Companies or the Companies opting for diversification generally believes in the practice of inducing the best executives and employees who bring in their know-how, skill and technical expertise that ultimately results in augmenting the business value of the enterprise. Ms. Anjali Aggarwal Vice President +919971673336 anjali@indiacp.com Nowadays, Organisations are using value enhancing mechanisms to inculcate a feeling among key professionals to undertake tasks independently as Entrepreneurs that would not only result in their own professional development but would also leads to enhancement in their personal wealth. Such value enhancing mechanisms involves issuance of shares for their hard work and contribution in the form of Intellectual Property Rights (IPR), know-how, skill and technical expertise. The shares issued to such employees (either at a discounted price or against the know-how contributed) are, in legal parlance be term...