Comparing RSUs and ESOPs: A Comprehensive Guide
RSUs and ESOPs are popular equity compensation tools used by companies to attract, retain, and reward employees. RSUs are company shares granted to employees, which vest over time or upon meeting specific conditions. They offer direct ownership once vested and are often used by companies to align employee goals with long-term performance. ESOPs, on the other hand, are stock ownership plans that allow employees to buy or receive shares, creating a sense of ownership and loyalty within the company. They are typically structured as retirement benefits or as part of incentive packages.
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