Setting up an ESOP
Once a company has decided to set-up an ESOP or employee share scheme for staff, key decisions need to be made on:
- the percentage of company equity to allocate to the ESOP pool
- the allocation of grants from this pool to participating staff.
Template for ESOP Allocations
Some companies offer ESOP to all of their employees, while others allocate to certain staff or roles only. Based on their objectives for the scheme, companies will need to decide how widely to offer ESOP grants, and also how many options to offer employees.
Companies can use this ESOP allocation tool as a guide for calculating ESOP pools and potential allocations to staff: