Article · Medium read
A Basic Guide to Understand ESOPs in India
Qapita Free Beginner India
Equity is one of your strongest levers for pulling engineers away from higher-paying options, but only if you can explain it clearly. This guide covers how ESOPs, vesting, pool sizing, and taxation actually work in India, so you can talk about equity credibly with candidates. Use it to make your offer compelling rather than confusing.
- Early-stage Indian startups typically set aside 10 to 15 percent for the ESOP pool
- Standard practice is four year vesting with a one year cliff
- Explain taxation clearly so candidates trust and value the equity you offer
