ESOP is one of the best incentives. Thank you for explaining this Ankur. Thank you simplifying this for all. Everyone who is starting career must watch this. Young entrepreneurs must watch and think about implementing this wisely. 🙏
I am first time getting ESOP and happy to know that I have 18 months of excercise period if I resign in first 18 months and 3 years if I resign post 18 months. 💯
Hey Ankur, Probability of an IPO is very low. Considering Indian startups ecosystem - what's the average buy pack percentage i.e. how many startups buy back the ESOPs from the employee? Liquidating ESOPs is a big problem I believe.
@@warikoo I actually had a question on when is it more beneficial to exercise the ESOPs. Say we’re talking about Rs. 1000 ESOPs at this point, and I want to exercise them and pay 20% tax (or Rs.200) today. If I exercise the ESOPs 5 years later when the same stocks are worth much more (assuming startup performs really well), let’s say Rs. 100000 (hypothetically), I’ll be paying 20% tax on a larger sum now, I.e. Rs. 20000 right? Wanted your feedback on this thought process, pardon any crazy assumption of mine.
@@snehakumari6527 I think the value of the stock is pre-determined/preset when the ESOP offer is first made to you. So you always pay tax on the Rs.1000. That's why company's probably take a risk when they have a longer exercise period. Because they are giving you more time to see how the company performs and then take a call on whether to convert the options into stocks.
@@snehakumari6527 : Tax is basis what valuation you get esops , what you are refering to is Market value . ESOP's will be taxed at value at which u get from your employer .
Thanks for the video @warikoo... I had one question... In case it is a very early stage startup and there is no means as of yet to determine the valuation, how is the value of an ESOP calculated?
so, @warikoo if the event of stock conversion into money doesn't fall under the exercise period - would you still recommend converting them into stocks? (As post the exercise period, the ESOPs may lapse)
Do I have to pay tax twice? Let's say, I converted the ESOPs to stocks in the exercise period (from your example 100 stock at 100rs = 10000 Rs) so I paid 2000 Rs as tax (20% slab and assuming I got the ESOPs for free). Now let's say after 1 year I am able to sell these stocks at 200 Rs (100 stocks * 200 = 20000 rs), Now do I have to pay tax at 10000 rs(20000 - 10000 = 10000 rs) again?
Esop sale 3 month bad hota hai to ajkal kaise log same day sale kr rhe hai in stock market. As per stock market block deal mai clear malum chl rha hai jise esop milta hai wo use same day market mai sale kr deta hai
What about strike price? In ESOPs we only get the "right to buy" a share at a fixed price called strike price. So when we need to exercise our ESOP, we actually have to pay money to buy the shares, right? You missed this completely in the video. Or maybe I am wrong here?
Why will you "PAY" money to buy the shares? The shares are given by the company to you because it is a part of your CTC. You don't have to pay anything you will get the shares allotted to you and you can sell them at a later time to get the equivalent money.
@@PrafulPrasad Because you are only given stock options and NOT stocks. You have to purchase the shares if you actually want the shares. Now you would ask how do I make money through ESOPs if I have to pay to get the shares. Well, if the shares of the company go high, you have to buy them at the strike price (which will be lower) and sell them at the current price. The delta will be the money you will gain. Please correct me if I am wrong.
@@warikoo So we just need to pay Re1 or Rs10 to buy the shares? These will be so much better than RSUs then. Shouldn't the strike price be the market price of the share at the grant date?
@@shashwatgangwar8782 oh you're right I learned something new today so the exercise price is much lower than the fair market value of the stock so it makes sense to get those shares
Thank you sir for explaining in a much easier manner. I've few questions: 1. How company's valuation is calculated? 2. How to judge any startup that it will rise and the esops will become favourable in long term? 3. How can I calculate my esops value if the esops were granted in form of a percentage, knowing the funding amount, company's valuation at which esops were granted?
Hi Sir, as you said people wait for events to buy the ESOP, what if in that period of time the ESOP price has been increased (because of funding etc.). Then the ESOP which you could have bought cheaper you are paying an increased price.
My observations: 1. ESOPs cannot be given free. They should be given at least at face value ( as per law) 2. Vesting period of one year is minimum as per law
Ankur Sir I had a question. What if i am told that cliff for an esop is 1 year and i am being given 100 thousand worth of esops with vesting period of four years and frequency of 25% for each year. Will I be able to withdraw my 100 thousand worth of esops at the end of one year or four years? Because if its four years then technicaly If i am joining a company in 2024 then I will have to work untill 2028 to just get shares of that year and for shares of 2028, I will have to work till 2032.
Do we have to pay tax only on the wealth gained or the whole amount? Eg: if I have 10 Esop at rs10 each, but the current market price is rs100 each, so to convert esops to stock I will have to pay 100rs to company to make them to stocks but now in my portfolio I have 1000rs worth of stock which is 900rs more than my original paid amount, so income tax will be calculated on 900rs only na [the wealth gained] ? Or the will the income tax will be calculated on the entire 1000rs worth of stock?
Wow!! ESOPs explained so well..Thanks Ankur for providing such informative content in such a 101 style video.. Looking forward to such amazing videos :)
sir, pls advice , maine 9 sal pehle lic komal jeevan li thi investment ya future saving ko soch kar, ab uski cost 206000 hai agar main ye amt. lic se lekar mutual fund mein laga doon to kya ye sahi step rahega ? kyoki lic mujhe 14 saal baad kareeb 5 ya 5.5 lakh degi (jismein ki abhi mujhe 25000 ki 6 installment or deni hain,) to itne to main agar ye policy band karke ye paise index fund mein laga doon to ussey jyada mil jayege. pls advice.
How can we convert these esops into stocks? I know you said about ipo or new funding or secondary purchase, but can’t we ask companies to provide and then we can sell those market?
When does the exercise period starts being counted in case the company has not gone into that stock to money conversion event? Say it's a startup and it never got an IPO.
Thank you! This was very informative. Also, you had mentioned that employee can convert ESOPs into money and there are multiple options. Could you please elaborate how can one do that?
As mentioned at 13:18 "that you have received Rs. 1000 income" is it coz 100 Shares X Rs. 10 Initial Price or a mistake and it should have been 100 Shares X Rs. 100?
This was an eye-opening video! Thank you, Ankur for all the amazing content you put out that educates one and all. These are relevant and important stuff that you touch upon - helps many "millennials" start making the right decisions early on. My request is that, if you can create content on how one can start investing in foreign markets. I'm sure it will help many of us here. Thank you for considering this. Looking forward to more videos.
I have ESOP in a startup where I currently work, will I get some money when we get funding. I still didn't complete my cliff period does it make any difference?
My company has given ESOP option to employees . While exercising option we have to pay 37% tax over total amount of discounted units allotted to us. Allotment has happened in sept 20. We have to pay for units in first fortnight of april21. There on for one year we have a lock in period for these units. Kindly share insights over this.
The most simplified video on ESOPs. I work as a recruiter for law firms and In-house teams and trust me, most of them, despite being lawyers don't understand exercise periods. Thanks, Ankur!
@@abhinavgarg0077 I am in a situation where I need to deal with possible ESOPS, being a student this kind of information is very difficult to find and realise what it really is. But Ankur has put it very nicely! Now I have a broad idea and actionable advice.
I haven't understood the concept of exceeding period. If the company is not listed and the employee has the option to exercise his stock, how will he sell it?
Hey Ankur, can you guide me to the process of converting your ESOPs into money. You mentioned that there is an event that has to happen. Now, is this event decided in advance that if we get funding, or we do xyz you can convert the stocks into money or is this company’s call as per the situation.
I think the most important question would be how does a non listed company arrive at a valuation. Listed companies are transparent by mean of their market capitalization. What about startups???
Can you explain more on the taxation part? E.g. My company would be going for an IPO in 6 months and there is double taxation on this. I want to know what will be my maximum tax outgo considering I am in the top tax bracket?
I feel one important factor that was missed out is that most of the startups do not have stocks value to begin with but they give employees esops in offer letters just to make them feel special and get some work out of them .. this is a simple trick that allmost all early age startups use on employees.
is a propritership firm can make their esops. i am an employee in a startup which is right now a propritership firm. what is good for me , plz reply thankyou
Hi Ankur, i have been following you since last 2-3 months, purchased one course also but didn't take any class of time management because of lack of time 😆, i have referred almost 100 people to your channel for financial planning, because you are superb. I have associated with a company and got some ESOPS and have few questions but don't want to ask you here, i follow you over twitter also so will ask you there. Thanks for making us more financially planned🙂👍🙏
Hi Ankur, Great to hear from you all this, Can you brief us the difference between RSO/ESOP. ESOP are not always free, if it is payable at a discounted price, how the conversion happens, do we need to give our employer relevant funds and DP id so that they can grant us these stocks, just wanted to know about the process. Thanks in advance
Hey Warikoo, thank you so much! You explained it so well 💙 If possible would you let me know what is secondary transaction/tender offer for my "vesting options"? I got the tender offer letter to sell 20% of my vestings. I officially joined this company since 9 months and it had a huge funding round recently.
I am negotiating an offer where I have esop option to choose and I now understand what all I need to be aware of while talking to HR. Really appreciate your efforts and time to make this video, very helpful :)
"GHANTA" in CAPS Agar aap Empolyee ho to isme mat faso, Agar aap ready ho 2-5 years 5% increment ke sath(Jab sabhi yearly 30-50(even100%) hike) le rahe ho to hi ye OK hai, Kyun ki ye sirf Company profit ke lieye aur Empoyee ko Lubandne ki consept hai
"Simplicity is the ultimate sophistication". Thanks a lot for this, Ankur! I work in a startup but never took ESOPs seriously as I found it complex with all the jargons. Even I don't know what my exercise period is 😂
Hi Sir, thanks for this useful video, I have couple of question - 1) is the value of esops, even if they are vested over a period of time, decided as per the value of the stock when an employee joins a company or it will be at the actual price at the time it will be vested? 2) in the last part, you mean to say the entire value of stocks will be considered taxable which is 10,000 and not 1000, right? 3) in the last part, for publically trading companies, we don't need to wait for an event to cash it, right?
Hello sir I'm founder of Fireboxx entrepreneurs Pvt Ltd. I want to consult with your regarding espos and finding Please let me know how to connect with you for more details... At last I would like to say, I'm big fan of you.. i also purchased your course "complete Startup guide" which helped me a lot and I'm learning everyday from you and other creators... Thank you so much ❤️
Absolutely loved it Ankur! Very insightful. Especially, the ESOPs being considered as a source of income! 🙏 Also, please give us the warikoo version of income tax and return filings. 😬
Hi Ankur, Hope you are doing good. I have a question regarding ESOPs What is the best way to get a benefit out of ESOPs for an employee ? So it also doesn't make big financial impact or big tax impact. I will positively wait for your reply. Thanks.
Thats very good Ankur, Can you comment on TAX liabilities if ESOP monetarized due to XYZ reason. specially company listed in USA but give ESOP to india employees
Ankur my name is prashant shukla and I am 16 years old and I owened indiaetc ltd and mi apko challenge krtahu ki aj se 1 sal bad ap mera interview loge byy c u soon and date ko note kr loo
@@myshah4476 shi hi ap ne agr 14 sal ki age pe startup kiya accha hi but sayd app ne bhot sari galtiya bhi ki hongi or unse ap ne bhot kuch sikha hoga agr ap ne ...Rupee ka loss liya hoga to apne us loss ke 100 guna jada rupee ke business or money management ko jarur smgha hoga mi bhi 16 age me hu but mi bhot bar gira bhot kuch sikha hii or age bhot sari galtiya kr ke bhot kuch sikhana chahta huu thankq my shah
What happens if my startup grow in valuation but does not reach a point of IPO or don't go seek more funding? How can my employees benefit from this? How can I make sure that I'm not promising them something that is not going to be of any use in the future? How do I make sure that I don't make fool out of them? Please reply if anyone know about this. Preferably Ankur sir, though I doubt he'll see this. :)
Dear sir today I have been granted esops from my company 55 vested and 945 unvested total 1000 esops current valuation is showing 0. How can I get money from this esops and I make monthly money or together i will get during exercise period
Hello Sir, Awesome video....thanks for the information. I wanted to know more about the capital gains bit and the part that you mentioned about when people invest in ESOP's ( IPO and other options)
Instead of ESOP company should give them terms of profit sharing in term of money I Hard Cash money as "Incentive" then after we can do anything with that either buy bluechip shares or inverst real estate or buy gold . 2) Company also get benifit in their balance sheet .
Sir, you're so good. So simply you explained. I've become your admirer. I've a question. Company given esop but they have to be listed!?? What does this mean
Sir, ek job de do. I can do Operational work, thoda strategy bhi bana leta hu, critical problem solver bhi bol sakta hu khud ko, partnership & alliances me interest bahot h pr knowledge kam h or aapke liye acchi communication skills le aaunga, collaborative environment me acche performance ki guarantee de rha hu, number se khelne ka shokh h to numeracy skills bol do, data manage krne me mazaa ata h. Baki MS office GSheets le lo. Aur to kya jaan loge
Hi, ankur I have 2 questions 1.Agar ESOP exercise Period mentioned nahi hai grant letter me to kya karna chahiye 2.Excercise price per option -kya hota hai. Regards Akram Shaik
I am an intern in a start up I have worked for the company for around 2 year now but I was not having any Idea about this thing...my internship will get completed in this year so to whom I should ask regarding the esop plan for our start up... Thanks your videos are being very helpful to me
ESOP is one of the best incentives. Thank you for explaining this Ankur. Thank you simplifying this for all. Everyone who is starting career must watch this. Young entrepreneurs must watch and think about implementing this wisely. 🙏
Thank you :)
Wow Manish Pandey sir 😀
@@warikoo ankur sir thank you, make a case study on moneytap
Thanks
Sir i have esop but confused the valuation
Superr! Ankur is the real OG.
Being a CS Student I can really want to thank you sir for the great efforts you are putting for clearing technical concepts for a common man
I am first time getting ESOP and happy to know that I have 18 months of excercise period if I resign in first 18 months and 3 years if I resign post 18 months. 💯
Hey Ankur,
Probability of an IPO is very low. Considering Indian startups ecosystem - what's the average buy pack percentage i.e. how many startups buy back the ESOPs from the employee?
Liquidating ESOPs is a big problem I believe.
Perfect Explaination 🔥😀
After this, whenever I go for an interview, I'd blow the recruiter's mind.
Hahaha
The fact is I came to know about esops lately when I joined a startup. Also, till now I was in a understanding that esops and stocks/shares are same
Also, you can check out the most important questions you should ask a recruiter before accepting an offer...
th-cam.com/video/A0a02FEt8OQ/w-d-xo.html
100 ESOPS× Rs.100= Rs.10000
But hum bhavnaein smjh gye the!!
Haha
@@warikoo I actually had a question on when is it more beneficial to exercise the ESOPs.
Say we’re talking about Rs. 1000 ESOPs at this point, and I want to exercise them and pay 20% tax (or Rs.200) today. If I exercise the ESOPs 5 years later when the same stocks are worth much more (assuming startup performs really well), let’s say Rs. 100000 (hypothetically), I’ll be paying 20% tax on a larger sum now, I.e. Rs. 20000 right?
Wanted your feedback on this thought process, pardon any crazy assumption of mine.
@@snehakumari6527 I think the value of the stock is pre-determined/preset when the ESOP offer is first made to you. So you always pay tax on the Rs.1000. That's why company's probably take a risk when they have a longer exercise period. Because they are giving you more time to see how the company performs and then take a call on whether to convert the options into stocks.
@@Dariensav okay wow yeah now I get it better. Thanks man ✌️
@@snehakumari6527 : Tax is basis what valuation you get esops , what you are refering to is Market value . ESOP's will be taxed at value at which u get from your employer .
Thanks for the video @warikoo... I had one question... In case it is a very early stage startup and there is no means as of yet to determine the valuation, how is the value of an ESOP calculated?
Net income par tex lagta hai yaa
Gross income per
Koi bata sakta hai.....
so, @warikoo if the event of stock conversion into money doesn't fall under the exercise period - would you still recommend converting them into stocks? (As post the exercise period, the ESOPs may lapse)
Thank you sir...!🙏
Do I have to pay tax twice?
Let's say, I converted the ESOPs to stocks in the exercise period (from your example 100 stock at 100rs = 10000 Rs) so I paid 2000 Rs as tax (20% slab and assuming I got the ESOPs for free).
Now let's say after 1 year I am able to sell these stocks at 200 Rs (100 stocks * 200 = 20000 rs), Now do I have to pay tax at 10000 rs(20000 - 10000 = 10000 rs) again?
Yes
Esop sale 3 month bad hota hai to ajkal kaise log same day sale kr rhe hai in stock market. As per stock market block deal mai clear malum chl rha hai jise esop milta hai wo use same day market mai sale kr deta hai
What about strike price? In ESOPs we only get the "right to buy" a share at a fixed price called strike price. So when we need to exercise our ESOP, we actually have to pay money to buy the shares, right? You missed this completely in the video. Or maybe I am wrong here?
Why will you "PAY" money to buy the shares? The shares are given by the company to you because it is a part of your CTC. You don't have to pay anything you will get the shares allotted to you and you can sell them at a later time to get the equivalent money.
For most companies the strike price is a nominally low value (mostly Re1 or Rs 10 in India)
@@PrafulPrasad Because you are only given stock options and NOT stocks. You have to purchase the shares if you actually want the shares. Now you would ask how do I make money through ESOPs if I have to pay to get the shares. Well, if the shares of the company go high, you have to buy them at the strike price (which will be lower) and sell them at the current price. The delta will be the money you will gain.
Please correct me if I am wrong.
@@warikoo So we just need to pay Re1 or Rs10 to buy the shares? These will be so much better than RSUs then. Shouldn't the strike price be the market price of the share at the grant date?
@@shashwatgangwar8782 oh you're right I learned something new today so the exercise price is much lower than the fair market value of the stock so it makes sense to get those shares
I have given resignation but the company is trying to retain me by offering stocks!! should I go for it ? or join another company?
Thank you sir for explaining in a much easier manner. I've few questions:
1. How company's valuation is calculated?
2. How to judge any startup that it will rise and the esops will become favourable in long term?
3. How can I calculate my esops value if the esops were granted in form of a percentage, knowing the funding amount, company's valuation at which esops were granted?
@warikoo can you explain, it will be helpful for us
@warikoo
Yesterday was searching this! Thank you❤️
So informative. Thank you so much, sir! This channel is a goldmine.
Thank you so much
Please share new videos everyday. It feels like i have learnt less when I don't see any new video of your's.
Hi Sir, as you said people wait for events to buy the ESOP, what if in that period of time the ESOP price has been increased (because of funding etc.). Then the ESOP which you could have bought cheaper you are paying an increased price.
Great video. Thanks for explaining this so simply. Can you please explain/share a video comparing direct/sweat equity grants vs. ESOPs in start ups?
Thanks Ankur, this was very, very informative. Cleared a lot of my doubts.
I'd appreciate a similar video on RSUs, if possible.
Is it wise to buy ESOP..
My observations:
1. ESOPs cannot be given free. They should be given at least at face value ( as per law)
2. Vesting period of one year is minimum as per law
Again just to hear this man's voice❤️ thought I am 17 you inspire a lot 💯
Ankur Sir I had a question. What if i am told that cliff for an esop is 1 year and i am being given 100 thousand worth of esops with vesting period of four years and frequency of 25% for each year. Will I be able to withdraw my 100 thousand worth of esops at the end of one year or four years? Because if its four years then technicaly If i am joining a company in 2024 then I will have to work untill 2028 to just get shares of that year and for shares of 2028, I will have to work till 2032.
This is great information Ankur. Can you please also explain RSUs and the difference between ESOPS and RSUs
Do we have to pay tax only on the wealth gained or the whole amount?
Eg: if I have 10 Esop at rs10 each, but the current market price is rs100 each, so to convert esops to stock I will have to pay 100rs to company to make them to stocks but now in my portfolio I have 1000rs worth of stock which is 900rs more than my original paid amount, so income tax will be calculated on 900rs only na [the wealth gained] ? Or the will the income tax will be calculated on the entire 1000rs worth of stock?
Wow!! ESOPs explained so well..Thanks Ankur for providing such informative content in such a 101 style video.. Looking forward to such amazing videos :)
Thank you
How to decide the value of how much esops should be given to an employee
Thank you very much for your lucid explanation. It would be better if you explain the difference between RSUs and ESOPs
sir, pls advice , maine 9 sal pehle lic komal jeevan li thi investment ya future saving ko soch kar, ab uski cost 206000 hai agar main ye amt. lic se lekar mutual fund mein laga doon to kya ye sahi step rahega ? kyoki lic mujhe 14 saal baad kareeb 5 ya 5.5 lakh degi (jismein ki abhi mujhe 25000 ki 6 installment or deni hain,) to itne to main agar ye policy band karke ye paise index fund mein laga doon to ussey jyada mil jayege. pls advice.
Great !
Very well conveyed in layman's language
Thx Mr. warikoo
Which types of company can offer ESOPs plan?
Ye Future Startup owner ke liye bhi best video hai.❤️
To issue a share, is company not required to be listed in any of exchange? If no, who decides these prices?
Can you share few tips for freshers as to how to choose a startup to join (apart from domain preference and founder's vision)
How can we convert these esops into stocks? I know you said about ipo or new funding or secondary purchase, but can’t we ask companies to provide and then we can sell those market?
Every piece of the word coming from you is gold for me. Keep inspiring us. This definitely helped me understand ESOPs.
How to start ESOPs plan and how it's work in small team?
When does the exercise period starts being counted in case the company has not gone into that stock to money conversion event? Say it's a startup and it never got an IPO.
How to start ESOPs plan for company?
Thank you! This was very informative. Also, you had mentioned that employee can convert ESOPs into money and there are multiple options. Could you please elaborate how can one do that?
Thank you for the great explanation.
Just wanted to know, does companies charge tax for these ESOPs monthly/yearly wise?
12:38 Good expression though 😂😂
Mr.Bean moment
As mentioned at 13:18 "that you have received Rs. 1000 income" is it coz 100 Shares X Rs. 10 Initial Price or a mistake and it should have been 100 Shares X Rs. 100?
Thanks for the comments Drop your message on the WhatsApp number above for Guidelines and information on trading..
This was an eye-opening video! Thank you, Ankur for all the amazing content you put out that educates one and all. These are relevant and important stuff that you touch upon - helps many "millennials" start making the right decisions early on. My request is that, if you can create content on how one can start investing in foreign markets. I'm sure it will help many of us here. Thank you for considering this. Looking forward to more videos.
I would request the same Ankur
Hi Ankur, Thank you for a very good video. My question: Is it necessary to convert ESOPs to Stocks at the time of leaving the company?
Nobody tells & teaches us these things like you Sir, you are absolutely great ❤️❤️❤️
I have ESOP in a startup where I currently work, will I get some money when we get funding. I still didn't complete my cliff period does it make any difference?
No
No
1.) What is difference b/w ESOPs and RSUs given by companies?
2.)How are ESOPs converted to stocks?
Hi Ankur, can you please help in knowing how one can save tax if the value of ESOPS being alloted to an employee crosses a crore.
My company has given ESOP option to employees . While exercising option we have to pay 37% tax over total amount of discounted units allotted to us. Allotment has happened in sept 20. We have to pay for units in first fortnight of april21. There on for one year we have a lock in period for these units. Kindly share insights over this.
The most simplified video on ESOPs. I work as a recruiter for law firms and In-house teams and trust me, most of them, despite being lawyers don't understand exercise periods. Thanks, Ankur!
Sir tax on startup pr ek video plz
This came in at the perfect time for me!
All the best
Hey Vikrat!
But why is this the perfect time for you??
@@warikoo thankyou
@@abhinavgarg0077 I am in a situation where I need to deal with possible ESOPS, being a student this kind of information is very difficult to find and realise what it really is. But Ankur has put it very nicely! Now I have a broad idea and actionable advice.
Same here!!!
I haven't understood the concept of exceeding period. If the company is not listed and the employee has the option to exercise his stock, how will he sell it?
Being a startup employee, this was immensely helpful. Thank you so much!
lol what if MRF gives ESOPs😅😅
Hey Ankur, can you guide me to the process of converting your ESOPs into money. You mentioned that there is an event that has to happen. Now, is this event decided in advance that if we get funding, or we do xyz you can convert the stocks into money or is this company’s call as per the situation.
Very useful knowledge...👍👍👍
I think the most important question would be how does a non listed company arrive at a valuation. Listed companies are transparent by mean of their market capitalization. What about startups???
Ever heard of a CA?
Merchant bankers are usually involved
Can you explain more on the taxation part? E.g. My company would be going for an IPO in 6 months and there is double taxation on this. I want to know what will be my maximum tax outgo considering I am in the top tax bracket?
I feel one important factor that was missed out is that most of the startups do not have stocks value to begin with but they give employees esops in offer letters just to make them feel special and get some work out of them .. this is a simple trick that allmost all early age startups use on employees.
ESAR explanation video please... My company is giving us ESARs.
Also please make a comparison video for esop and ESAR
jo video chahiye hoti hain vahi upload hojati hain thode time mein. Love ❤🙏
is a propritership firm can make their esops.
i am an employee in a startup which is right now a propritership firm.
what is good for me , plz reply
thankyou
Hi Ankur, i have been following you since last 2-3 months, purchased one course also but didn't take any class of time management because of lack of time 😆, i have referred almost 100 people to your channel for financial planning, because you are superb.
I have associated with a company and got some ESOPS and have few questions but don't want to ask you here, i follow you over twitter also so will ask you there.
Thanks for making us more financially planned🙂👍🙏
What will be the tax rules in case I got ESOP from US based company. Will I be paying tax in US and India both?
Hi Ankur, Great to hear from you all this, Can you brief us the difference between RSO/ESOP.
ESOP are not always free, if it is payable at a discounted price, how the conversion happens, do we need to give our employer relevant funds and DP id so that they can grant us these stocks, just wanted to know about the process.
Thanks in advance
@warikoo made mistake in last example 100 ESOP * 100 Per share = 10000 not 1000
Hey Warikoo,
thank you so much! You explained it so well 💙
If possible would you let me know what is secondary transaction/tender offer for my "vesting options"?
I got the tender offer letter to sell 20% of my vestings. I officially joined this company since 9 months and it had a huge funding round recently.
Sir What if startup is not listed in stock market, till when one person can hold the esops.
I am negotiating an offer where I have esop option to choose and I now understand what all I need to be aware of while talking to HR.
Really appreciate your efforts and time to make this video, very helpful :)
Great video sir! I had a question. Can an employee exercise their ESOPs whilst remaining at the company?
Yes
what is the difference between RSU and ESOPS ?
Great video. Can you please bring out the differences between ESOP, RSU and ESO Right in your next video. That'd be really helpful. Thanks
Sure
"GHANTA" in CAPS
Agar aap Empolyee ho to isme mat faso,
Agar aap ready ho 2-5 years 5% increment ke sath(Jab sabhi yearly 30-50(even100%) hike) le rahe ho to hi ye OK hai,
Kyun ki ye sirf Company profit ke lieye aur Empoyee ko Lubandne ki consept hai
"Simplicity is the ultimate sophistication".
Thanks a lot for this, Ankur! I work in a startup but never took ESOPs seriously as I found it complex with all the jargons. Even I don't know what my exercise period is 😂
I am CA student in intermediate just abhi ESOP Ka chapter complete Kiya. Itni Khushi ho apka video Dekh k🔥🔥
Hi Sir, thanks for this useful video, I have couple of question -
1) is the value of esops, even if they are vested over a period of time, decided as per the value of the stock when an employee joins a company or it will be at the actual price at the time it will be vested?
2) in the last part, you mean to say the entire value of stocks will be considered taxable which is 10,000 and not 1000, right?
3) in the last part, for publically trading companies, we don't need to wait for an event to cash it, right?
The value of your esop is the value on which u get your grant letter. For public companies, you have some lock in period where u can't sell.
How ESOP benefitted company?
👆🏻👆🏻👆🏻👆🏻📩📩
I really needed this. Thank you.
Glad this helps :)
Hello sir
I'm founder of Fireboxx entrepreneurs Pvt Ltd. I want to consult with your regarding espos and finding
Please let me know how to connect with you for more details...
At last I would like to say, I'm big fan of you.. i also purchased your course "complete Startup guide" which helped me a lot and I'm learning everyday from you and other creators...
Thank you so much ❤️
Absolutely loved it Ankur! Very insightful.
Especially, the ESOPs being considered as a source of income! 🙏
Also, please give us the warikoo version of income tax and return filings.
😬
Hi Ankur, Hope you are doing good.
I have a question regarding ESOPs
What is the best way to get a benefit out of ESOPs for an employee ? So it also doesn't make big financial impact or big tax impact. I will positively wait for your reply. Thanks.
You are doing legendary work for financial knowledge to the youth.
Thats very good Ankur, Can you comment on TAX liabilities if ESOP monetarized due to XYZ reason. specially company listed in USA but give ESOP to india employees
Ankur my name is prashant shukla and I am 16 years old and I owened indiaetc ltd and mi apko challenge krtahu ki aj se 1 sal bad ap mera interview loge byy c u soon and date ko note kr loo
Beta tuje bahut sikhna hai..bhrm me mat reh.. 🤦..mene bhi 14 saal me company chalu ki thi..aaj 20 saal ka hu.. debt me se bounce back kia hai..
@@myshah4476 shi hi ap ne agr 14 sal ki age pe startup kiya accha hi but sayd app ne bhot sari galtiya bhi ki hongi or unse ap ne bhot kuch sikha hoga agr ap ne ...Rupee ka loss liya hoga to apne us loss ke 100 guna jada rupee ke business or money management ko jarur smgha hoga mi bhi 16 age me hu but mi bhot bar gira bhot kuch sikha hii or age bhot sari galtiya kr ke bhot kuch sikhana chahta huu thankq my shah
Tu fail ho gaya bhai
@@drm.l.shukla6758haa bhai? Kaha hai interview 😂😂padhne likhne ke umar me nautanki krraha thaa😂
@@aarav.aish14lol 😂😂
Sir, are you talking only about startups or also about big companies??
What happens if my startup grow in valuation but does not reach a point of IPO or don't go seek more funding? How can my employees benefit from this? How can I make sure that I'm not promising them something that is not going to be of any use in the future? How do I make sure that I don't make fool out of them? Please reply if anyone know about this. Preferably Ankur sir, though I doubt he'll see this. :)
Dear sir today I have been granted esops from my company 55 vested and 945 unvested total 1000 esops current valuation is showing 0. How can I get money from this esops and I make monthly money or together i will get during exercise period
Hello Sir, Awesome video....thanks for the information.
I wanted to know more about the capital gains bit and the part that you mentioned about when people invest in ESOP's ( IPO and other options)
Instead of ESOP company should give them terms of profit sharing in term of money I Hard Cash money as "Incentive" then after we can do anything with that either buy bluechip shares or inverst real estate or buy gold . 2) Company also get benifit in their balance sheet .
Sir, you're so good. So simply you explained. I've become your admirer. I've a question. Company given esop but they have to be listed!?? What does this mean
ESOPS Vs Equity which is best option? Can leave the company even if having equity of the company without selling equity? Please advise
Sir, ek job de do. I can do Operational work, thoda strategy bhi bana leta hu, critical problem solver bhi bol sakta hu khud ko, partnership & alliances me interest bahot h pr knowledge kam h or aapke liye acchi communication skills le aaunga, collaborative environment me acche performance ki guarantee de rha hu, number se khelne ka shokh h to numeracy skills bol do, data manage krne me mazaa ata h. Baki MS office GSheets le lo. Aur to kya jaan loge
Hi, ankur I have 2 questions
1.Agar ESOP exercise Period mentioned nahi hai grant letter me to kya karna chahiye
2.Excercise price per option -kya hota hai.
Regards
Akram Shaik
Amazon does backloading of RSU by giving 5%,10%,40%,40% in 4 years
Pvt company mee kitna esop rehta hai sir... minimum nd maximum...nd then how to transfer employees
I am an intern in a start up I have worked for the company for around 2 year now but I was not having any Idea about this thing...my internship will get completed in this year so to whom I should ask regarding the esop plan for our start up...
Thanks your videos are being very helpful to me