Knowledge Centre
Valuation of ESOPs - Setting Volatility Assumption
Expected volatility of the stock is one of the key assumptions in determining fair value of ESOPs. It is a measure of the amount by which the share price of Company is expected to fluctuate during a given period. This article explains the requirements of Ind AS 102 around determining the volatility assumption to be used in estimation of fair value of ESOPs.
Analysis of Salary Growth Rate assumption adopted by NSE 50 Companies (FY20 and FY21)
Salary growth rate is one of the most important assumptions made while performing actuarial valuation of salary based employee benefit schemes such as gratuity, earned leaves, pensions etc.
Discount Rate for Actuarial Valuations of Employee Benefits (December 2021)
The rate used to discount post-employment benefit obligations (both funded and unfunded) shall be determined by reference to market yields at the end of the reporting period on government bonds.
Designing Successful ESOP Program
Designing ESOPs requires consideration of many factors and the need to strike a balance between various conflicting objectives. Click here to learn more about the key aspects to be considered.
ESOP in Private Companies - Pitfalls to avoid at each stage
On the surface, ESOPs are a straightforward form of employee benefit plan, but underneath, they can be so much more. Read this editorial to find out the key pitfalls that any Private Company should avoid in implementing ESOPs.
Discount Rate for Actuarial Valuations of Employee Benefits (September 2021)
The discount rate used in actuarial valuations of employee benefit plans such as gratuity, pension, earned leave etc.
Discount Rate for Actuarial Valuations of Employee Benefits (June 2021)
The rate used to discount post-employment benefit obligations (both funded and unfunded) shall be determined by reference to market yields at the end of the reporting period on government bonds.
Employee Stock Options Choosing the right plan for your organization
Creating a Stock Ownership Plan is an activity much greater than creating a scheme document and is closely knitted with organisation’s growth stage, risk return profile and future business plans.