Employee stock option plans gain traction among founders despite lack of understanding: study

EMPLOYEE stock option plans (Esops) have gained popularity among founders, with 78 per cent of the 160 startups polled offering such plans to employees in 2024, up from 59 per cent in 2021.

The 2024 study done by Saison Capital, the corporate venture arm of Japan’s Credit Saison, angel investment network XA Network and equity management platform Carta also found that more startups are offering Esops to all employees and not just senior management. Now, one in three startups offers such plans to all employees, up from one in four in 2021.