scorecardresearchWhat are the benefits and drawbacks of ESOPs?

What are the benefits and drawbacks of ESOPs?

Updated: 04 Apr 2022, 05:30 PM IST
TL;DR.
ESOPs, as enticing as they may appear, are not for everyone. They come with a long list of prerequisites, as well as a number of restrictions and obligations. Before getting one, it is vital to understand the benefits and drawbacks of ESOPs. Let's take a closer look at that.
ESOPs is a common trend in start-ups, where firms provide employees the opportunity to preserve significant cash outflows in lieu of a high wage, when resources are limited.

ESOPs is a common trend in start-ups, where firms provide employees the opportunity to preserve significant cash outflows in lieu of a high wage, when resources are limited.