This presentation is designed to help startup founders, business leaders, and strategic thinkers understand the crucial role ESOPs can play in helping accelerate growth, meet strategic targets, hit the right note to drive valuations exponentially. The presentation provides answers to questions like: How can ESOP create a success story in Start-ups? Why these ESOP plans are successful? What are the common pitfalls while implementing ESOPs?

1. Topic: India’s biggest ESOP success stories and
what we can learn from them
Presented By: Rahul Somani
Head Operations – Consulting and Managed Services

2. Current Capital market
» Increase in the number of Companies going for listing (IPO Market)
» Increase in the market value of major indices over last year:
» Nifty 50 – 24%
» BSE Sensex – 18%
» More than 40 Unicorns in India – 1,400 funding deals and 32 billion $ funds raised last year
» Employees’ confidence increased on ESOPs as incentive/ wealth creation tool
» Many success stories in ESOPs (Listed/ Unlisted) – Flipkart, Zomato, Nykaa, Infosys, HDFC Bank, Freshworks
etc

3. Success ESOP Stories in Start-ups
Source: Google News
ESOP Buyback
in last few years
IPO, ESOP holders
created wealth more
than Rs. 30K Crores
Listed on NYSE, ESOP
holders became
millionaires
Buyback of Options,
ESOP holders became
early millionaires

4. Why these ESOP plans are successful
» Early implementation – Benefit of aggressive growth
» Broad-based plans – Ownership culture deep into organization (exceeding Industry practice)
» Predictable Liquidity Event - Employees participation at Investment rounds
» Transparent ESOP policies – Reasonable certainty
» Different structure of Grants at different levels/stages (like Joining Grants, Performance Grants etc.)

5. Common pitfalls while implementing ESOPs
» No clear expectations / mismatch of expectations of Employees and Management
» Excessive dilution or insufficient ESOP Pool
» Implementing scheme without factoring in stage of business
» Uncertain or complex terms and conditions – creates confusion/ misunderstandings
» No clarity on liquidity event

6. Key learnings
» Optimum ESOP Pool (provision in Cap table) – (Adequate Wealth Creation)
» Different type of grants depending on employee levels and stages of business
» Certainty in ESOP terms and conditions (Transparent provisions)
» Regular / Predictable Liquidity events (Highly motivational)

7. About Speaker:
Rahul heads Operation of ESOP ezeeTM. He is a
Chartered Accountant and has rich experience in
Plan Designing, Stock Plan Administration, Option
Accounting, Financial Audit, Internal Audit, Statutory
Compliances, and Managing Operations. He was
earlier working at PWC. You can reach out to Rahul
at rahul@esopdirect.com
Rahul Somani
Head Operations –
Consulting and Managed
Services
Disclaimer
The materials and information on this presentation have been prepared or assembled by the Firm and are intended for informational purposes only. Any opinions
expressed on or through this presentation are the opinions of the individual speaker and may not reflect the opinions or guidelines of the Firm or the Industry.
ESOP ezee do not accept or assume responsibility for any other purpose or to any other person to whom this note is shown or in whose hands it may come.
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info@esopezee.com
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About US:
ESOP ezeeTM. is a one-stop bundled solution to Design and
manage the entire life-cycle of ESOPs in early stage and
start up companies. As a long-term partner, we work with
our clients to make ESOP successful