ESOP - Employee Stock Option Plan EXPLAINED in Hindi | Ankur Warikoo Startups | Startup Video

[@join2manish]

ESOP is one of the best incentives. Thank you for explaining this Ankur. Thank you simplifying this for all. Everyone who is starting career must watch this. Young entrepreneurs must watch and think about implementing this wisely. 🙏

[@warikoo]

Thank you :)

[@randomteen4436]

Wow Manish Pandey sir 😀

[@PrinceYadav-nw9qs]

@@warikoo ankur sir thank you, make a case study on moneytap

[@ion4age]

Thanks

[@shubhamwase4254]

Sir i have esop but confused the valuation

[@veerpalkaurtuli7804]

Being a CS Student I can really want to thank you sir for the great efforts you are putting for clearing technical concepts for a common man

[@sakshisrivastava5596]

Thank you sir for explaining in a much easier manner. I've few questions: 1. How company's valuation is calculated? 2. How to judge any startup that it will rise and the esops will become favourable in long term? 3. How can I calculate my esops value if the esops were granted in form of a percentage, knowing the funding amount, company's valuation at which esops were granted?

[@debojyotidey8487]

@warikoo can you explain, it will be helpful for us

[@yaaibaadi]

@warikoo

[@yavanikashah]

The most simplified video on ESOPs. I work as a recruiter for law firms and In-house teams and trust me, most of them, despite being lawyers don't understand exercise periods. Thanks, Ankur!

[@saideepesh6036]

After this, whenever I go for an interview, I'd blow the recruiter's mind.

[@warikoo]

Hahaha

[@whatsinaname8450]

The fact is I came to know about esops lately when I joined a startup. Also, till now I was in a understanding that esops and stocks/shares are same

[@skillpad]

Also, you can check out the most important questions you should ask a recruiter before accepting an offer... kzbin.info/www/bejne/d2HEYWV8etlrhbM

[@PriyankaSingh-cg1bl]

You are the best Sir , while I have always stayed away from Finance and financial term but watching your videos is helping me immensely to grow

[@bhushanjadhav6578]

Again just to hear this man's voice❤️ thought I am 17 you inspire a lot 💯

[@rasoolkhan406]

Thank you so much. I am about to join a startup this is such an important topic to know.

[@Aman_Krishnavanshi]

Ye Future Startup owner ke liye bhi best video hai.❤️

[@farooqhussain5368]

Thank you sir, I have resigned my company before two months, now I understand about ESOP exercise.

[@poojapatel7452]

I am negotiating an offer where I have esop option to choose and I now understand what all I need to be aware of while talking to HR. Really appreciate your efforts and time to make this video, very helpful :)

[@Payalchoudhari]

I am CA student in intermediate just abhi ESOP Ka chapter complete Kiya. Itni Khushi ho apka video Dekh k🔥🔥

[@albus6966]

So informative. Thank you so much, sir! This channel is a goldmine.

[@warikoo]

Thank you so much

[@mdazhar3465]

Kya baat hai sir aap jaisa abhi tak dusra youtube nd LinkedIn pr nhi dikha aage bhi ummeed nhi lag rhi ek complicated topic ko kitne acche se aap explain krte hai... Thanks

[@warikoo]

Thank you :)

[@rahulkaushik4194]

Being a startup employee, this was immensely helpful. Thank you so much!

[@gautammakwana1574]

Hey Ankur, The way u explain the concept was so simplified that the person like me who has never heard about it before , also understand it so smoothly . So a big thank you to presenting complex thing in to most simple way Thank you, Gautam Makwana

[@mukeshnuna]

Every piece of the word coming from you is gold for me. Keep inspiring us. This definitely helped me understand ESOPs.

[@poushanhassan187]

We need this type of explanation video on Startups words 🤞.

[@imnikhilnayak]

Thanks Ankur, this was very, very informative. Cleared a lot of my doubts. I'd appreciate a similar video on RSUs, if possible.

[@melodiousamit5588]

Is it wise to buy ESOP..

[@vikassaxenablr]

Best thing I like about you is that you explain most of it in Hindi and its every easy to understand things ...

[@evergreen7781]

Nobody tells & teaches us these things like you Sir, you are absolutely great ❤️❤️❤️

[@taniasant5741]

Thank you for your extremely generous spirit in sharing in such detail things that we are quite clueless about. I’m looking at my ESOP today.

[@AdityaBhardwaj1]

"Simplicity is the ultimate sophistication". Thanks a lot for this, Ankur! I work in a startup but never took ESOPs seriously as I found it complex with all the jargons. Even I don't know what my exercise period is 😂

[@fakiraoye]

It's always feels good listening to him Informative and interesting

[@PuneetKumar-xq5ki]

Great ! Very well conveyed in layman's language Thx Mr. warikoo

[@rohitchaurasia]

Got here newly and binged all the videos. Really found it helpful. Please continue the great work. I am hoping that we will also get similar video for RSU and Employee stock purchase plan as well describing following points 1. What should be our strategy for taking the most out it. 2. Tax strategy for that considering that its heavily taxed. 3. What should be our plan for them when we plan to leave the company.

[@kumblenagesh]

Thank you very much for your lucid explanation. It would be better if you explain the difference between RSUs and ESOPs

[@kodgimathashwin]

You explained in very simple manner. Wonderful otherwise i would have watched more KZbin videos. Thanks for sharing valuable knowledge. You are awesome brother 👍

[@MishraSir]

Hi Ankur, i have been following you since last 2-3 months, purchased one course also but didn't take any class of time management because of lack of time 😆, i have referred almost 100 people to your channel for financial planning, because you are superb. I have associated with a company and got some ESOPS and have few questions but don't want to ask you here, i follow you over twitter also so will ask you there. Thanks for making us more financially planned🙂👍🙏

[@deepakfialok]

My company just announced ESPOs and this guy explained ESOPs in such a simpler way that I am feeling already exciting. One of the rare videos where I subscribed to the channel before they suggested it.

[@dhjadjaand]

Hey Ankur, Probability of an IPO is very low. Considering Indian startups ecosystem - what's the average buy pack percentage i.e. how many startups buy back the ESOPs from the employee? Liquidating ESOPs is a big problem I believe.

[@shikharkotwall]

This is very helpful Ankur and you made the explaination so simple and interesting for our further conversation with the management.

[@askingnikhil]

Thanks for the video @warikoo... I had one question... In case it is a very early stage startup and there is no means as of yet to determine the valuation, how is the value of an ESOP calculated?

[@yogenspwt4070]

1st of all i want say Thank ankur sir. Aap time nikalte ho aur valueable content share krte h. Recently i started a startup (Urbancultur). Abhi kuchh hi months hue h CTO ko, Unhe Esop diya h 7 Lakh values ke. Now he is demanding ki sir increment chahiye. He joined us before 7 months. Increment dena thik hoga or fir mujhe convenience krni ki jarur hai?

[@ShivaniMenons]

This was an eye-opening video! Thank you, Ankur for all the amazing content you put out that educates one and all. These are relevant and important stuff that you touch upon - helps many "millennials" start making the right decisions early on. My request is that, if you can create content on how one can start investing in foreign markets. I'm sure it will help many of us here. Thank you for considering this. Looking forward to more videos.

[@Do_Anything_you_want]

I would request the same Ankur

[@mohammedzameer5965]

ESOP milkar 2 saal hochuke lekin iska matlab aj samajh aya. TYSM. :)

[@ANSYoutube]

You are doing legendary work for financial knowledge to the youth.

[@AlokPateliitB]

Thank you for this video. Helped me evaluate my job offers. I had no clue about the exercise period and income tax liabilities.

[@sakshamkapur6001]

I feel one important factor that was missed out is that most of the startups do not have stocks value to begin with but they give employees esops in offer letters just to make them feel special and get some work out of them .. this is a simple trick that allmost all early age startups use on employees.

[@AnshumanMehta]

I was just about to join a startup and they offered me eshop and this video has helped me a lot in understanding all about eshop, thank and keep the good work on... :-)

[@warikoo]

Thank you!

[@nagarajanparasuraman5203]

Wow!! ESOPs explained so well..Thanks Ankur for providing such informative content in such a 101 style video.. Looking forward to such amazing videos :)

[@warikoo]

Thank you

[@cupcake5036]

Thank you sir..... Meri 12th ki book me tha esop or aapne itne ache se detail me padha dia...🥰

[@kumarjeet51]

This is great information Ankur. Can you please also explain RSUs and the difference between ESOPS and RSUs

[@pritamshaw7678]

Finally this vdo took me half an hour to finish coz i was making notes out of it. Thank you warricko

[@KuunalGhosh]

Hi Ankur, Great to hear from you all this, Can you brief us the difference between RSO/ESOP. ESOP are not always free, if it is payable at a discounted price, how the conversion happens, do we need to give our employer relevant funds and DP id so that they can grant us these stocks, just wanted to know about the process. Thanks in advance

[@kcmv4479]

I WISH I WORKED WITH YOUR COMPANY ... HOW CAN A DROP OUT LEARN SO MUCH ... I salute such dropouts

[@vangujral]

jo video chahiye hoti hain vahi upload hojati hain thode time mein. Love ❤🙏

[@AnkitPandey-si5qo]

Ur way of explaining each and every point is awesome

[@bhatvikrant]

This came in at the perfect time for me!

[@warikoo]

All the best

[@abhinavgarg0077]

Hey Vikrat! But why is this the perfect time for you??

[@bhatvikrant]

@@warikoo thankyou

[@bhatvikrant]

@@abhinavgarg0077 I am in a situation where I need to deal with possible ESOPS, being a student this kind of information is very difficult to find and realise what it really is. But Ankur has put it very nicely! Now I have a broad idea and actionable advice.

[@Dariensav]

Same here!!!

[@darshankn96]

An eye opening explanation on excercise period thank u for enlightening. 1 question> Other than paying it upon exercise, do we need to pay tax when we encash it?(if the value has increased)

[@gauravvgat]

Let's say your esop price is A, when u exercise the price is B. Now u will have to pat tax on B-A. When u sell the stock in future at C, you need to pay CG tax on C-B.

[@wincythomas]

I think the most important question would be how does a non listed company arrive at a valuation. Listed companies are transparent by mean of their market capitalization. What about startups???

[@krishnakantchoudhary797]

Ever heard of a CA?

[@sakshamsehgal9009]

Merchant bankers are usually involved

[@ushadas5575]

Thank you so much sir for explaining this topic so nicely 😊 You cleared all doubts of this topic.

[@palashudhwani6872]

Can you share few tips for freshers as to how to choose a startup to join (apart from domain preference and founder's vision)

[@SindhuBiswal]

Best explainer in Hindi till date.. Kaash yeh video 4 saal pehle dekh liya hota. Thanks a lot Ankur for choosing this topic. :)

[@YashYadav-td4ex]

Thank you! This was very informative. Also, you had mentioned that employee can convert ESOPs into money and there are multiple options. Could you please elaborate how can one do that?

[@vaibhavkumar903]

Ankur big fan of your videos, your content is too addictive. I once saw you youtube add once, since then watching your content. God bless you man

[@chiragjain6805]

Great video. Can you please bring out the differences between ESOP, RSU and ESO Right in your next video. That'd be really helpful. Thanks

[@warikoo]

Sure

[@ShivamMittal144]

My organization is also planning for ESOP's this year. Great and helpful video. I will now have much clarity while this kicks in.thanks

[@RahulSingh-my5wp]

Hi Sir, as you said people wait for events to buy the ESOP, what if in that period of time the ESOP price has been increased (because of funding etc.). Then the ESOP which you could have bought cheaper you are paying an increased price.

[@mridul1161]

Very.. Nice.. I want more.. Finance and business related video like what is ipo and stuff..

[@anubhavgupta3075]

100 ESOPS× Rs.100= Rs.10000 But hum bhavnaein smjh gye the!!

[@warikoo]

Haha

[@snehakumari6527]

@@warikoo I actually had a question on when is it more beneficial to exercise the ESOPs. Say we’re talking about Rs. 1000 ESOPs at this point, and I want to exercise them and pay 20% tax (or Rs.200) today. If I exercise the ESOPs 5 years later when the same stocks are worth much more (assuming startup performs really well), let’s say Rs. 100000 (hypothetically), I’ll be paying 20% tax on a larger sum now, I.e. Rs. 20000 right? Wanted your feedback on this thought process, pardon any crazy assumption of mine.

[@Dariensav]

@@snehakumari6527 I think the value of the stock is pre-determined/preset when the ESOP offer is first made to you. So you always pay tax on the Rs.1000. That's why company's probably take a risk when they have a longer exercise period. Because they are giving you more time to see how the company performs and then take a call on whether to convert the options into stocks.

[@snehakumari6527]

@@Dariensav okay wow yeah now I get it better. Thanks man ✌️

[@piyushthakur3402]

@@snehakumari6527 : Tax is basis what valuation you get esops , what you are refering to is Market value . ESOP's will be taxed at value at which u get from your employer .

[@MedhaRai]

wow....thank you so much for clarifying it so nicely in the best simplified manner. Truly impressed by you video. Keep sharing it more!

[@srejitk]

Absolutely loved it Ankur! Very insightful. Especially, the ESOPs being considered as a source of income! 🙏 Also, please give us the warikoo version of income tax and return filings. 😬

[@bullishness6343]

Sure each contribution will make the startup community more stronger

[@Abbasshaikh42]

I really needed this. Thank you.

[@warikoo]

Glad this helps :)

[@pavanpriyatham7420]

One of the most insightful videos on ESOPs here! Thanks a lot for this!

[@ramgarg743]

Hi Sir, thanks for this useful video, I have couple of question - 1) is the value of esops, even if they are vested over a period of time, decided as per the value of the stock when an employee joins a company or it will be at the actual price at the time it will be vested? 2) in the last part, you mean to say the entire value of stocks will be considered taxable which is 10,000 and not 1000, right? 3) in the last part, for publically trading companies, we don't need to wait for an event to cash it, right?

[@gauravvgat]

The value of your esop is the value on which u get your grant letter. For public companies, you have some lock in period where u can't sell.

[@anandt6662]

Ankur your videos are really nice and lot simple to understand, Thanks for uploading

[@WordPress2014]

Great video sir! I had a question. Can an employee exercise their ESOPs whilst remaining at the company?

[@warikoo]

Yes

[@rupeshrajput2274]

Your explanation makes every concept a cakewalk 🔥

[@saritatandon3609]

1.) What is difference b/w ESOPs and RSUs given by companies? 2.)How are ESOPs converted to stocks?

[@gauravdaga5274]

Hi Ankur, can you please help in knowing how one can save tax if the value of ESOPS being alloted to an employee crosses a crore.

[@1-Random-Subscriber]

Nice! I will be showing this video to all new employees, who join my company from now on

[@SoumyaVishwakarma]

so, @warikoo if the event of stock conversion into money doesn't fall under the exercise period - would you still recommend converting them into stocks? (As post the exercise period, the ESOPs may lapse)

[@yashpasad]

REALLY LIKED THE WAY YOU EXPLAIN! SIMPLE AND CLEAR

[@fariaanzum7564]

Hey Warikoo, thank you so much! You explained it so well 💙 If possible would you let me know what is secondary transaction/tender offer for my "vesting options"? I got the tender offer letter to sell 20% of my vestings. I officially joined this company since 9 months and it had a huge funding round recently.

[@vorfour]

What A Channel for Learning FUndamental of Entrepreneurship unlike other counterparts Charging Money for this

[@atulchaturvedi4530]

When does the exercise period starts being counted in case the company has not gone into that stock to money conversion event? Say it's a startup and it never got an IPO.

[@VishwajaS]

Ankur , Your session is very simply explained . I have a doubt , to convert ESOPS in shares from Employee stock options within the exercise options means that the employee has to pay the amount and purchase the shares OR he just has to do the formalities and no need to pay anything as it is given by the company

[@shashwatgangwar8782]

What about strike price? In ESOPs we only get the "right to buy" a share at a fixed price called strike price. So when we need to exercise our ESOP, we actually have to pay money to buy the shares, right? You missed this completely in the video. Or maybe I am wrong here?

[@PrafulPrasad]

Why will you "PAY" money to buy the shares? The shares are given by the company to you because it is a part of your CTC. You don't have to pay anything you will get the shares allotted to you and you can sell them at a later time to get the equivalent money.

[@warikoo]

For most companies the strike price is a nominally low value (mostly Re1 or Rs 10 in India)

[@shashwatgangwar8782]

@@PrafulPrasad Because you are only given stock options and NOT stocks. You have to purchase the shares if you actually want the shares. Now you would ask how do I make money through ESOPs if I have to pay to get the shares. Well, if the shares of the company go high, you have to buy them at the strike price (which will be lower) and sell them at the current price. The delta will be the money you will gain. Please correct me if I am wrong.

[@shashwatgangwar8782]

@@warikoo So we just need to pay Re1 or Rs10 to buy the shares? These will be so much better than RSUs then. Shouldn't the strike price be the market price of the share at the grant date?

[@PrafulPrasad]

@@shashwatgangwar8782 oh you're right I learned something new today so the exercise price is much lower than the fair market value of the stock so it makes sense to get those shares

[@sadfeellings007]

Aapke Time management se Mai bahut impress hu

[@nkalra0123]

Do I have to pay tax twice? Let's say, I converted the ESOPs to stocks in the exercise period (from your example 100 stock at 100rs = 10000 Rs) so I paid 2000 Rs as tax (20% slab and assuming I got the ESOPs for free). Now let's say after 1 year I am able to sell these stocks at 200 Rs (100 stocks * 200 = 20000 rs), Now do I have to pay tax at 10000 rs(20000 - 10000 = 10000 rs) again?

[@pritishsahoo3202]

Yes

[@शून्य-ढ4फ]

Please make a video on difference between ESOPs vs RSU vs ESPP.

[@onecreativeman]

Hey Ankur, can you guide me to the process of converting your ESOPs into money. You mentioned that there is an event that has to happen. Now, is this event decided in advance that if we get funding, or we do xyz you can convert the stocks into money or is this company’s call as per the situation.

[@harumigupta7301]

Esops simplified! Great video, thank you for making this! :)

[@pankaaj1087]

12:38 Good expression though 😂😂

[@aryanagrawal5996]

Mr.Bean moment

[@piyushshrivastava7174]

Apki video quality and explanation bahut acha h... Thankyou very much

[@warikoo]

Thank you :)

[@drm.l.shukla6758]

Ankur my name is prashant shukla and I am 16 years old and I owened indiaetc ltd and mi apko challenge krtahu ki aj se 1 sal bad ap mera interview loge byy c u soon and date ko note kr loo

[@myshah4476]

Beta tuje bahut sikhna hai..bhrm me mat reh.. 🤦..mene bhi 14 saal me company chalu ki thi..aaj 20 saal ka hu.. debt me se bounce back kia hai..

[@drm.l.shukla6758]

@@myshah4476 shi hi ap ne agr 14 sal ki age pe startup kiya accha hi but sayd app ne bhot sari galtiya bhi ki hongi or unse ap ne bhot kuch sikha hoga agr ap ne ...Rupee ka loss liya hoga to apne us loss ke 100 guna jada rupee ke business or money management ko jarur smgha hoga mi bhi 16 age me hu but mi bhot bar gira bhot kuch sikha hii or age bhot sari galtiya kr ke bhot kuch sikhana chahta huu thankq my shah

[@vitraabhi4992]

Tu fail ho gaya bhai

[@aarav.aish14]

​@@drm.l.shukla6758haa bhai? Kaha hai interview 😂😂padhne likhne ke umar me nautanki krraha thaa😂

[@chamber6634]

​@@aarav.aish14lol 😂😂

[@ibtisamshaikh6750]

Crystal clear explanation, Thank you much Ankur.

[@rishikeshkumar2595]

Thank you sir For sharing informative thing about esops..

[@sheikhsaad1032]

Sir bohot hi asaan language me aapne samjha diya thank you so much sir. aapse request hai k please funding rounds ko bhi clearly define kriye next videos me. Thank You So Much

[@kohlidk]

Thanks Ankur for such a nice & simplified explanation u have provided on ESOP. Please let me know, how a startup (unlisted) company, running in loss, rate the value of options I.e. how we determine the offer price at this point of time or price per share will be notified after the end of initial period of one year.

[@ShubhamJaiswalmnitjpr]

Very helpful Ankur Sir...this video has cleared a lot of my doubts related to ESOPs and Stocks.

[@sudarshanmhaisdhune1039]

Most simplified explanation I witness!

[@sachinbelbase1496]

Watching your contents from Nepal 🇳🇵 Really Amazing and Useful Knowledge Ankur sir ❤️

[@ashutoshsingh2806]

I am co-founder of an upcoming start-up aur ab jake is cheez ke bare me pta chala mujhe, iske bare me achhe se padhunga aur jyada jaanne ki koshish karunga taki mere company ke employees ke liye ye options de saku, thanks for telling this. So my question is, kya ye employees ke salary package me included hota hai ya phir alag se option dena padta hai?

[@TejasGuptaMusic]

Not only helpful for entrepreneurs but for students as well...

[@hariharnayak2049]

Thank you for explaining it very softly to understand this.

[@shalvinjoshi7700]

Thank you for explaining in such simple terms.

[@bilalbhojani9112]

I am first time getting ESOP and happy to know that I have 18 months of excercise period if I resign in first 18 months and 3 years if I resign post 18 months. 💯

[@manusiddharthbasotia740]

thank you for the amazing info. Would have been really great if this was explained by a real time example along with calculations