ESOP and what instant - where, where - tan

- There are many reasons to many businesses implementing ESOP (roughly interpreted as issuing shares to officers and employees - employees) in recent times, but perhaps indispensable to the cause: Shares have "priced" back.


The reason for using the word "cost" is because over time, the stock of many companies being "devalued" in the eyes of that enterprise. Business relationship - not only shares encapsulated in a few large entities which impact across markets and through this also very much worth mentioning. For example, stocks in general and in particular ESOP costs back also means that the market can not go back though heyday as 6-7 years ago, but the values ​​were clearly defined before the day is over more.


Tan then the


Period 2006 - 2007, almost bought shares on the floor with great interest, shares "usually" has thus fully understand stocks "preference" also brought great profit to the public. The listed companies, unlisted or listed upcoming issue of preference shares is easy and often greater than the supply.
 

 

The information transparency, implementing investor relations activities is crucial


But since 2008 onwards, the stock "preference" has become "abusive" and previous buyers how much more the following year "tragedy" for this type of stock that much. In fact, at this point, tend to issue ESOP if any new matter only in the beginning stages, still concentrated in large companies, work efficiently.


Call it a comeback, but also rated it as "new trend" has its reasons.


Talking back is because the preferred shares issued to employees already have, but for some time been "estranged" and now back, and then the melt. Speaking as a new trend is now released ESOP shares in particular or in general is not as easy as day before.


ESOP is a matter to be dissected in the press, more media, which is released with the company how much weight, shareholders of corporate debt physician ESOP plan ... Just so happen that the first investment, shareholders should be more concerned with the only reasonable option ESOP can create convincing. But more importantly, look at the company's ESOP issues, we will also have additional assessments related items.


Do not let the case then dissolved


In fact, though the ESOP preference factors have brought the buyers are still buying stocks, but this is similar to the investment, have advantages, there are also risks. At many companies, employees are now listening to what stocks to buy is "disgusting", but this is not only because a few years ago was stuck for abuse stocks.


Employees will have to consider whether to buy now, ESOP after 2-3 years there is a private investment business was successful or not. Look on this perspective, the company is issuing ESOP means that employees believe in the company in general and in particular on the stock price. This belief is also a long-term trust, because if the transfer time limit which employees often leave the ESOP will be sold to the company that takes away a certain boon.


On the other side, through the issuance of ESOP success also demonstrates that the field of business namely the leaders. An ESOP plan if equitable distribution rights bought from management positions to the employees under the plan will be a positive, it does demonstrate the preferential policies, equal to the company's employees action.


Furthermore, to ensure positive benefits for ESOP plans, business leaders must also have taken action to ensure value, corporate image, thereby positively impact the stock price . This is not the move "underground" like "fighting" shares or "hold value" shares all the strategies. In addition to the company helm to work efficiently, then the information transparency, operational deployment investor relations are also very important.


There is a phenomenon that many businesses may also be limited, it is the employees of many companies ... such as the interest in the shares of the company. Despite the fact that this could be a hobby, or a condition or reason, but this is a pity.


An employee is not interested in shares also means that businesses can lose a working relationship with investors and the market as a key potential stakeholders. If the issuer later ESOP, the employees do not care, do not understand the stock will hardly participate. But this is disadvantage for both employees and companies.