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ESOP Direct set to ease managing of ESOP Liquidity events in Unlisted companies through ESOP Leap as a managed service

This platform enables the company to plan, execute and comply payoffs to its employees seamlessly.

January 19, 2021 18:36 IST
Liquidity

ESOP Direct, market leader in Equity compensation services has launched, “ESOP Leap” (Liquidity Event Administration Platform), a platform for unlisted companies to manage ESOP liquidity events. This platform enables the company to plan, execute and comply payoffs to its employees seamlessly.

ESOP Leap has strong analytics feature with a BI tool which provides interactive visualization to the user interface to create own reports and dashboards. While planning for the event, the platform enables creating and saving multiple scenarios around amount of funds available, Options or employees eligible to participate, etc.

While executing the event, platform enables communication to and from employees and acceptance of offer by them. From the compliance standpoint, the employee gets to know the tax implication of the transaction for him the withholding tax obligation for the company. ESOP Leap is a managed service offering from ESOP Direct with a dedicated service helpdesk to respond to employee queries, track responses and manage the entire event.

ESOP Leap also has a separate window for investors to view and accept quantum of shares/options available with ESOP participants along with sharing their information and other details about the offers made.

There has been increasing trends in unlisted companies settling ESOPs granted to the employees, it is estimated that over 5000 employees have benefitted since 2018. Over15 companies during last two years have provided liquidity to their employees including Filpkart, Oyo,Swiggy, Pharm easy, Ola, Un-academy, MPL, Zerodha, First Cry, Bharat pe, Urban academy, Mesho, Razorpay and Moglix. This trend will continue, and many others are planning to come up with the ESOP buyback program to instill confidence, acknowledge the continued efforts and compensate employees for lack of incentives during initial lockdown period which impacted businesses at large. The value monetized in the last 24 months is between $400-$500 mln.

This is reflecting change in mindset about creating liquidity in unlisted company ESOP program which earlier was contemplated only at time of IPO or investor exiting the business and change of control.

To Find out more about the ESOP – Liquidity Event Administration Platform and other services provided by ESOP Direct, visit: www.esopdirect.com

About ESOP Direct

ESOP Direct is a market leading service provider in the Equity compensation space with a track record of over 2 decades. We have serviced more than 1000 corporate clients from startups and early-stage companies to large, listed ones. We have been thought leaders with active participation in framing of Rules, Regulations, and policies. We are a full spectrum integrated Equity compensation services company that can partner with you through the entire life cycle of your ESOP covering Scheme designing, Plan Administration, Option Valuation, Accounting Compliances, ESOP Trust Management, Liquidity event management and many others. Besides half a century old legacy in finance, taxation and accounting behind us, there are several more reasons why ESOP Direct can be your worthy ally.

 

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ESOP Direct set to ease managing of ESOP Liquidity events in Unlisted companies through ESOP Leap as a managed service

This platform enables the company to plan, execute and comply payoffs to its employees seamlessly.

ESOP Direct, market leader in Equity compensation services has launched, “ESOP Leap” (Liquidity Event Administration Platform), a platform for unlisted companies to manage ESOP liquidity events. This platform enables the company to plan, execute and comply payoffs to its employees seamlessly.

ESOP Leap has strong analytics feature with a BI tool which provides interactive visualization to the user interface to create own reports and dashboards. While planning for the event, the platform enables creating and saving multiple scenarios around amount of funds available, Options or employees eligible to participate, etc.

While executing the event, platform enables communication to and from employees and acceptance of offer by them. From the compliance standpoint, the employee gets to know the tax implication of the transaction for him the withholding tax obligation for the company. ESOP Leap is a managed service offering from ESOP Direct with a dedicated service helpdesk to respond to employee queries, track responses and manage the entire event.

ESOP Leap also has a separate window for investors to view and accept quantum of shares/options available with ESOP participants along with sharing their information and other details about the offers made.

There has been increasing trends in unlisted companies settling ESOPs granted to the employees, it is estimated that over 5000 employees have benefitted since 2018. Over15 companies during last two years have provided liquidity to their employees including Filpkart, Oyo,Swiggy, Pharm easy, Ola, Un-academy, MPL, Zerodha, First Cry, Bharat pe, Urban academy, Mesho, Razorpay and Moglix. This trend will continue, and many others are planning to come up with the ESOP buyback program to instill confidence, acknowledge the continued efforts and compensate employees for lack of incentives during initial lockdown period which impacted businesses at large. The value monetized in the last 24 months is between $400-$500 mln.

This is reflecting change in mindset about creating liquidity in unlisted company ESOP program which earlier was contemplated only at time of IPO or investor exiting the business and change of control.

To Find out more about the ESOP – Liquidity Event Administration Platform and other services provided by ESOP Direct, visit: www.esopdirect.com

About ESOP Direct

ESOP Direct is a market leading service provider in the Equity compensation space with a track record of over 2 decades. We have serviced more than 1000 corporate clients from startups and early-stage companies to large, listed ones. We have been thought leaders with active participation in framing of Rules, Regulations, and policies. We are a full spectrum integrated Equity compensation services company that can partner with you through the entire life cycle of your ESOP covering Scheme designing, Plan Administration, Option Valuation, Accounting Compliances, ESOP Trust Management, Liquidity event management and many others. Besides half a century old legacy in finance, taxation and accounting behind us, there are several more reasons why ESOP Direct can be your worthy ally.

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