Question re: Equity in India - Can you answer this?

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Amrutha Sandeep asked  "Stock Options or Phantom Stock in India?"



 


Question Details: What kind of incentive programs
are most effective for top 3-5 key contributors in Indian companies?
Please note these incentives are over and above the market cash
compensation that is being paid to the employee.

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http://www.quora.com/l/cgDK6Ij56q

1 Reply

If one is looking at issuing Indian stock to these employees, Stock options are more popular. For key employees, performance based vesting is quite common. Quite a few companies are looking at Face value grants ( Indian adpotation of RSU) to optimise the accounting and dilution constraints.


If one is looking at covering Indian employees under a global Plan, ESPP will have some implementation issues (for 3-5 team size). Any other instrument should work. However I have heard recently that it is getting difficult for non US residents to open a brokerage account with a US broker. If that is true then Phantom would be preferred to enable employees to encash their gains.

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Dan Walter
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