Grant advisory for an old Fintech with fresh listing

A newly listed company was contemplating 1st grant after its share got listed. The said company had been granting ESOPs since past couple of years while unlisted.

The company was need of handholding for appropriate grant allocation model basis best practices in identified peers, individual benefit allocation w.r.t. fair value of shares projected basis company’s own business plan and peer’s valuation multiples, accounting and tax impact.

We (ArthEdge) did a detailed benchmarking study of identified listed peers as to their ESOP grant practices as to periodicity of grant, quantum of benefit per grant, vesting period/%/vesting conditions, exercise price, ESOP pool usage per annum, etc. The objective was to remain within the industry average. There was a valuation projection work (for ESOP purposes) basis peers.

We did a simulation in different growth scenarios and framed a grant allocation model that serves the interest of both the employees and investors alike keeping in view strict governance practices while allocating ESOPs.