Employee stock option plans (ESOPs) and similar equity-linked long-term incentives (LTIs) are increasingly becoming the norm for organisations across sectors and growth stages. These incentives help organisations maximise returns for shareholders while delivering a truly distinctive value proposition for employees.
Grant Thornton research has shown that organisations that offer ESOPs significantly outperform their peers across sectors in revenue growth as well as profitability, with ~50% higher growth in both sales and profitability.
The top talent today is more often than not willing to forsake short-term cash-based compensation over long-term wealth creation opportunities. Employees, especially leadership team members, who are included under an ESOP, exhibit a sense of ownership and responsibility associated with the long-term value of their organisation.
Therefore, it becomes imperative for organisations to design LTIs to create both personal as well as organisational value while balancing the equity dilution and P&L impact in a highly regulated environment.
In this interactive workshop, conducted by our experts with a collective experience of delivering on over 200 compensation plans, we will share strategic insights and tactical advice on the design, implementation and outcomes of equity-linked LTIs.