I warn founders and angel investors about the practical risks of Indian ESOPs, based on recent observations.
Over 75% of vested ESOPs in 2024 went unclaimed before expiring.
A CXO was granted ₹70 lakh worth of ESOPs.
ESOPs in India are taxed twice:
If he quits, he has only 90 days to exercise his stock options.
The lack of secondary markets and high upfront costs mean many employees never realize any cash from their options.