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Glossary / Also known as

Stock option scheme

Another name for ESOP (Employee Stock Ownership Plan).

Other names
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What does stock option scheme mean?

Stock option scheme is another name for ESOP (Employee Stock Ownership Plan). A benefit plan that grants employees the right to purchase company shares at a predetermined price after completing a vesting period.

The two names mean the same thing. You will see "stock option scheme" in some ledgers, reports and contracts and "Employee Stock Ownership Plan" in others. The full entry covers how it works, with examples.

Read the full definition of ESOP (Employee Stock Ownership Plan)

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From the glossary

Related terms.

Company law and governance ESOP (Employee Stock Ownership Plan) A benefit plan that grants employees the right to purchase company shares at a predetermined price after completing a vesting period. Also called employee stock option plan, employee stock options, stock option scheme Company law and governance Cap Table (Capitalization Table) A detailed spreadsheet that tracks equity ownership, share classes, and dilution across all stakeholders of a company. Also called capitalisation table, shareholding table Company law and governance Vesting Schedule The timeline that determines when employees earn full ownership of stock options or equity granted under an ESOP. Also called ESOP vesting schedule, vesting period Company law and governance Annual General Meeting (AGM) An Annual General Meeting (AGM) is a mandatory yearly meeting of a company's shareholders required under Section 96 of the Companies Act, 2013 to transact ordinary business. Also called annual shareholders meeting Company law and governance Board Resolution A board resolution is a formal decision made by a company's board of directors during a board meeting, recorded in the minutes and required for key corporate actions under the Companies Act, 2013. Also called resolution of the board, directors resolution Company law and governance Business Registration The legal process of registering a business entity in India, obtaining required licenses and a government-recognized legal identity. Also called company registration, company incorporation
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