This is a real good article to understand the basics of ESOP.
I have few queries if you can clarify please.
Normally the lock in period for the ESOP is one year. Suppose a company hires a person and offers ESOP as part of the compensations whereby the employee can buy the shares after one year at face value.
Now the company has offered ESOp to the employee to attract him at the time of employment since the position was very critical. Now if company doesn't do well or does no more require that person and terminates the services before the maturity of lock in period, i.e before one year of employment.
What will happen in this case, does the employee get the shares
Hi, Please always avoid giving example with the same numbers which actually confuses the readers like me. You have said the price is 50 and the profit is 50 in the first example.