Analysis of Employment Stock Options Scheme

In today's corporate scenario, "human talent" acts as the key differentiator between successful organizations and others. The recognition of Human Capital as the Prime Resource of business organization, has led to fierce competition for attracting, retaining and motivating talent. The Employee Stock Option Schemes in different forms are the most effective form of management as it synergizes the interests of the employees and corporate entity they work for. It is this synergy which motivates employees to give that indefinable "extra" which brings sustained growth and profitability. In India, we have discovered a few examples of the success of ESOPs, to be specific Wipro, Dabur, Infosys and so on. However, India has still not fully utilised the benefits to be offered by ESOPs mainly due to lapse in policy regulations.

The present study aims to talk about the development of ESOPs, its benefits, the structure followed in other countries, the legal framework in India and the assessment of this framework. The paper presents different ideas and strategies through which ESOPs has been applied by enterprises to enable successful management to discover the current viewpoints in order to make it an achievement in the future.