Got some X no of vested share at one of the startups I worked for and they announced their first buy back program to accommodate new investors. What make me sit up was the multiplier factor. It’s HUGE. Not that I am going to be some corepati or a millionaire. But this is quite an eye opener. Someone with 2000 shares can take a break for two years and not work. I am still to decide if I want to sell or not. Personally I want to hold them further and not sell out yet.
All in all what a pleasant surprise.
Problems with ESOP’s in India are
a) Regulatory process for granting ESOP’s are not followed as per norms by many if not most,
b) Most recruitment in terms of number is with Mid and Big size companies, which are mostly public companies and employee are only aware of discounted share purchase programs not ESOP’s.
c) Unlike US we don’t have volume in Merger/Acquisition/Public IPO’s of startups happening.
Home grown companies like Infosys, mindtree did give away lot of ESOP’s and there are stories of lot of employees getting their share of success alongside the company. Mot many are aware of such stories.