Many companies within the Asia-Pacific region (APAC) struggle to craft a perfect Employee Stock Ownership Plan (ESOP) to incentivise employees. With various components to consider, like implementation rules, vesting schedules, and exercise periods, it can get pretty complicated.
That’s why we partnered with AC Ventures and wrote the ESOP Playbook – where you can get value-packed APAC-specific market insights, a step-by-step implementation guide, and practical tools to help you craft an ESOP program that works for your startup.
Market trends & best practices for startups
In APAC, there have been recent positive developments in how ESOPs are being implemented and utilized within companies.
Key APAC market trends:
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Startups in APAC reserve 10-12% of equity for employees
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The median first hire in APAC received 0.5% ownership
In navigating the complexities of issuing ESOPs in APAC, implementing best practices is instrumental in ensuring success while mitigating potential risks.
Key APAC best practices:
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Proactive financial audit preparation: Proactively set up accurate ESOP valuations and expense reports from the inception of the ESOP program.
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Streamlined ESOP administration: Utilize software solutions that automate updates and streamline communication with stakeholders and employees.
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Recognition of employee risks: Issuing equity, even in smaller amounts, to a wider pool of employees, recognises their contribution and aligns incentives.
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Strategic ESOP issuance: Follow the best practice of issuing less equity more frequently.
Fill out the form below to download the Carta ESOP playbook, an end-to-end resource for understanding the basics of ESOPs, including relevant insights and more best practices to consider.
Download the playbook
The ESOP Playbook was developed in partnership with AC Ventures.
