• Address 4/608, VOC St., Kottivakkam (OMR), CHENNAI
  • Email info@rlsassociates.in
  • Phone +91 6381341985

Services Details

RLS Associates - Company Secretary in Chennai India

Employee Stock Based Compensation

Stock compensation is a way corporations use stock or stock options to reward employees in lieu of cash. Stock compensation is often subject to a vesting period before it can be collected and sold by an employee.

Shares to the Executives

Companies that have been in business for at least one year may also allot sweat equity shares to their directors or executives. These are shares issued at a discount in consideration against know-how, value additions or intellectual property provided by the executive to the company. Sweat equity shares allotted by publicly traded companies must be locked-in for a period of three years.

Types of stock compensations:

  • Stock Appreciation Rights (SARs): SARs provide the rights to increase the value of a designated number of shares. Such an increase in value is paid in cash or company stock.
  • Restricted Stock Grants: These stocks give employees the right to acquire or receive shares under specific terms and conditions. This might include working for a certain number of years or meeting certain targets.
  • Phantom Stocks: This kind of stocks include a future cash bonus equal to the value of a defined number of shares. This does not involve any legal transfer of share ownership. Such stocks may be convertible to actual shares if certain events take place.
  • Employee Stock Purchase Plans: This kind of ownership gives the employees the right to purchase company shares, often at a discount.

    Kindly mail us your requirments to info@rlsassociates.in, our team will respond in 24 hours

    Download CATALOGUE

    • Other Services

    Need Help?

    • 4/608, VOC St., 2nd Floor,
      Kottivakkam (OMR),
      CHENNAI 96
    • +91 6381341985
    • info@rlsassociates.in

    NRI Services