Employee Stock Option Plan (ESOP)

Employee Stock Option Plan (ESOP)

Recruiting, training, motivating and retaining employees is an important strategic issue faced by many companies. It is becoming increasingly crucial to consider incentive programs, which include stock option plans, as a means to attract and retain key employees. Extensive research has shown that Employee Ownership companies grow faster than they would have without employee ownership and such companies are more stable than their counterparts. Employee ownership positively affects corporate performance and employee morale.

We have conducted independent research in three banks in the Middle East to study the impact of various plans and found positive implications.

We develop company-specific Employee Stock Option plans, customized by

  • ESOP Objective
  • Share price performance
  • Company’s business
  • Organizational structure
  • Corporate culture

We have profound experience at developing the following categories of ESOPs:

  • Employee Share Participation Plan
  • Employee Bonus Linked Stock Plan
  • Key Employee Share Plan
  • Employees Savings Plan
  • Employees Islamic Stock Participation Plan

Our approach incorporates the following on a turnkey basis:

  • Initial design
  • Presentation to the board
  • Receive feedback and update plans accordingly
  • Cost estimate using Monte Carlo simulations
  • Permission of regulators
  • Hedging (delta hedging)
  • Marketing
  • Implementing the system within the bank
  • Develop the software of the plan
  • Help settle the plan on maturity