Start up employees are now keen on trading off salaries for stocks. Here’s why
Advertisement
Advertisement
It’s a common trend in Now what happened was even an office boy took home Rs 50 lakh. Citrus Pay’s stock-owning employees (read crorepatis) had found an avenue to encash their employee stock options (ESOPs) to hit the jackpot.
"ESOPs were a lottery, are a lottery and will always remain a lottery,”
"The only thing that's gonna change in the nature of this lottery is the probability of one winning it. As the startups ecosystem in India”, points out
As funding is becoming too difficult to raise, Lawania opines, the trend will continue. This will increase the chances of winning the lottery, he told the financial daily, adding that for a startup employee, there are only two ways to encash ESOPs: either when the company gets listed or when it's bought. While listing is a bleak possibility for any Indian startup, a buyout is a more realistic option. In the past decades, the road to millions was mostly found by tech giants that made public offerings and got listed on the stock exchanges.
Advertisement
Earlier it was not easy to convince the new recruits in a start up to value-creation opportunity through ESOPs. However, recently the trend is making a shift when the employees are trading off a fat salary package for stock. Some are even taking a pay cut as high as 75% just to ensure that they maximise their chances of a windfall.
Advertisement
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status