ESOP Advisory Services | Savlana Init

ESOP Advisory

ESOP Advisory Services — Well-Designed. Compliant. Employee-Aligned.

Design and implementation support for Employee Stock Option Plans, from structuring to compliance.

An Employee Stock Option Plan aligns employee incentives with company growth, but requires careful structuring around vesting, valuation, and applicable compliance.

We support companies in designing ESOP schemes suited to their capital structure and employee retention objectives.

Our advisory covers scheme design, documentation, valuation, and ongoing compliance under applicable company law and tax provisions.

Our ESOP Services

ESOP Scheme Design

Structuring the scheme in line with company objectives and employee categories.

Valuation for ESOP

Supporting fair value determination required for grant and accounting purposes.

Trust Formation

Advisory on setting up an ESOP trust structure where applicable.

Vesting Schedule Design

Structuring vesting and exercise conditions aligned with retention goals.

Compliance under Companies Act

Ensuring scheme design and approvals comply with company law requirements.

Tax Structuring

Advisory on taxation of options at grant, vesting, and exercise stages.

Accounting Treatment

Support on accounting treatment of ESOP charges as per applicable standards.

ESOP Documentation

Preparing scheme rules, grant letters, and board and shareholder resolutions.

Our Process

Objective Assessment

Understanding the company's objective for introducing an ESOP scheme.

Scheme Design

Structuring pool size, eligibility, vesting, and exercise conditions.

Valuation & Documentation

Preparing valuation and scheme documentation for approval.

Approvals & Compliance

Obtaining board and shareholder approvals as required.

Grant & Ongoing Compliance

Supporting grant process and ongoing compliance requirements.

Why It Matters

✓Scheme design aligned with company objectives

✓Compliant vesting and exercise structuring

✓Valuation support for grant and accounting

✓Clear documentation for grants and approvals

✓Tax structuring for employees and company

✓Experience across company stages and sizes

✓Support for both trust and direct route schemes

✓Ongoing compliance support post-grant

Frequently Asked Questions

An ESOP, or Employee Stock Option Plan, gives employees the option to acquire company shares at a predetermined price after a vesting period.

No, an ESOP trust is not mandatory in all cases; companies may implement schemes directly or through a trust structure depending on their requirements.

ESOP valuation is generally determined using recognised valuation methods appropriate for accounting and taxation purposes.

ESOP schemes typically require board approval and, in most cases, shareholder approval under applicable company law provisions.

ESOPs are generally taxed at the time of exercise as a perquisite, and again at the time of sale as capital gains, subject to applicable provisions.

Yes, ESOP schemes can be designed differently for early-stage, growth-stage, and listed companies based on their specific objectives.

Looking to introduce or restructure an ESOP scheme?

We support scheme design, valuation, and compliance for ESOPs.