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PART 6: Introduction to ESOP (Employee Stock Option Plan) In a startup, especially in the early stages, talented people are one of the most valuable assets. But most early startups do not have enough money to pay very high salaries. This is where ESOP — Employee Stock Option Plan — becomes an impo…

PART 6: Introduction to ESOP (Employee Stock Option Plan) In a startup, especially in the early stages, talented people are one of the most valuable assets. But most early startups do not have enough money to pay very high salaries. This is where ESOP — Employee Stock Option Plan — becomes an important tool. First, it is important to understand one thing clearly: ESOP is not charity. Startups do not give ESOPs just to be generous. ESOPs are a strategic tool used by founders to build and stre