In the dynamic and intricate business landscape, it is imperative to maintain precise and compliant records of your company’s Employee Stock Option Plan (ESOP). Even the slightest error can have significant consequences (penalties up to 25 lakhs), making the annual ESOP compensation reviews crucial. By conducting thorough audits, you can ensure compliance with statutory provisions and accurately represent your financial statements, instilling trust and credibility among stakeholders who rely on this information to make informed decisions. 

Which companies should consider conducting an ESOP Audit?

If you are a startup with an ESOP program, granting ESOPs under a trust structure, basing vesting on performance, or dealing with cross-border ESOP grants, we strongly recommend conducting an ESOP Audit by lawyers and company secretaries with deep ESOP domain expertise.