So, unless you meet targets, you may not be able to vest your Esops. Dewan, Managing Partner, Antal International. 'By providing Esops, companies make sure that employees are putting in their best efforts for the success of the venture,' says Praveen K. Apart from the vesting period, your eligibility to accumulate stocks is also linked to your performance.
'Some companies with a four-year vesting period, have increasing slabs of 10%, 20%, 30%, 40%, rather than equal vesting (25% per year), which is unfair for shareholders who might quit early,' says Prasanna. Even the number of Esops that you vest per year during the vesting period often follows a schedule that does not favour the employee.
