Startup equity & liquidity
ESOPs, in plain English
What your options are really worth, and when you actually get to keep them.
What actually happens when my ESOPs vest?
Vesting means you have earned the right to buy your options, not that you own shares yet. On the vesting dates the options become yours to exercise...
Do I owe tax when I exercise my ESOPs in India?
Usually yes, and this catches people out. In India, exercising ESOPs is itself a taxable event: the gap between the fair market value on the exerci...
My ESOPs look valuable on paper. Is that real money yet?
Treat it as real only when it is liquid. A paper value is the latest round or 409A price times your vested shares, minus the strike you have to pay...
What happens to my ESOPs if I leave the company?
It depends on your grant, and the details can be expensive, so read it before you resign. Typically you keep only what has vested, and unvested opt...
How do I tell if an ESOP grant in a job offer is any good?
Look past the headline number to what you actually own and what it might be worth. Ask for the specifics: how many shares (not just a rupee value),...
eChai Partner Brands
