ESOP Buyback
Also called Liquidity Program
When a company buys back vested stock options from employees for cash, giving them liquidity before an exit. Increasingly common in India as a way to reward early team members.
Why it matters
ESOP buybacks turn paper equity into real money for employees who might otherwise wait years for an exit, which strengthens retention and trust. Running periodic buybacks has become a meaningful part of how Indian startups honor their ESOPs.
For example
An Indian startup runs an ESOP buyback, purchasing vested options from long-tenured employees for cash, giving them real liquidity years before an exit.
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Related terms
Also in Starting Up
See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.
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