ESOP Advisory
Designing Ownership Structures That Align People With Long-Term Business Value We view ESOPs not merely as a regulatory requirement, but as a long-term ownership and retention tool. Our ESOP Advisory services help organisations design, implement and manage employee ownership structures that are compliant, practical and aligned with the company’s growth journey. We work closely with promoters and leadership teams to ensure ESOP frameworks support talent retention while maintaining governance and shareholder balance.
Our Perspective on ESOP Advisory
ESOPs as a Strategic Tool, Not Just a Compliance Exercise
We believe ESOPs work best when they are designed with long-term intent. Our advisory focuses on aligning employee incentives with sustainable value creation rather than short-term outcomes.
Balancing Ownership, Control, and Incentives
Every ESOP structure involves trade-offs between ownership dilution, employee motivation and governance. We help organisations evaluate these aspects and arrive at a balanced, well-reasoned structure.
Our ESOP Advisory Working Process
01.
Understanding Business Objectives
We begin by understanding the company’s growth plans, talent strategy and promoter expectations from the ESOP framework.
02.
Structure Evaluation & Design
Based on business context, we evaluate alternative ESOP structures and recommend an approach aligned with long-term value creation.
03.
Valuation & Compliance Review
We perform ESOP valuations and ensure accounting and regulatory compliance as per applicable standards.
04.
Documentation & Execution
Clear documentation and structured implementation ensure smooth rollout and stakeholder clarity.
05.
Review & Ongoing Support
As the organisation grows, we support review and refinement of the ESOP framework.
06.
Why This Approach Works
This approach ensures ESOPs remain effective, compliant and aligned with both employee expectations and shareholder interests.
Who Can Benefit from Our ESOP Advisory Services
- Startups and growth-stage companies
- Promoter-led businesses building leadership teams
- Companies preparing for fundraising or IPO
- Organisations looking to retain and incentivise key talent
Scope of Our ESOP Advisory Services
ESOP Structure Design
Advisory on plan structure, eligibility criteria, vesting schedules and exercise mechanisms aligned with business objectives.
ESOP Valuation
Valuation of ESOPs and underlying equity in line with applicable accounting standards and regulatory requirements.
Ongoing ESOP Advisory
Support for modifications, secondary transactions, exits and ongoing ESOP-related advisory as the business evolves.
Regulatory & Accounting Compliance
Support on compliance with applicable laws, accounting standards and disclosure requirements related to ESOPs.
Documentation & Implementation Support
Assistance in preparing ESOP policy documents, agreements and implementation frameworks.
Why Choose LGT Growth Ventures for ESOP Advisory
- Thoughtful, long-term approach to ESOP structuring
- Strong understanding of valuation and regulatory requirements
- Balanced view of ownership, incentives and governance
- Clear documentation and disciplined execution
- Hands-on involvement with promoters and leadership teams
Let’s Discuss Your ESOP Strategy
If you are considering implementing or reviewing an ESOP framework, we would be glad to understand your objectives and provide structured advisory support.