"ESOPs (stock options) better than stock purchase plans? - Financial Express, India

Esops better than stock purchase plans - Financial Express

Companies often reward their employees with their stock, either in the
form of employee stock option plans (Esops) or employee stock purchase
plans (ESPPs). Esops are stock options granted to employees over a
vesting period, where the employee is given the right to purchase the
company’s shares at a predetermined price or the exercise price. If the
employee does not exercise the option within a time prescribed by the
company, the option automatically expires.

ESPPs allow employees to use their salary to purchase the
stock of the company, usually at a discounted price. Unlike Esops, ESPP
holders do not have any option, but are mandated to pay the exercise
price usually by way of monthly deductions from their salary.

Employees can realise the benefit by selling the shares in the
market, subject to a lock-in period, which starts from the date of the
grant for Esops and, for ESPPs, from the date...

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