{"componentChunkName":"component---src-templates-blog-post-ts","path":"/esops-become-increasingly-popular-in-the-financial-sector/","result":{"data":{"site":{"siteMetadata":{"title":"Clausehound Blog","author":"Joshua Koudys"}},"markdownRemark":{"id":"56abe0df-cffa-5f35-aecf-29d73bc05dec","excerpt":"With the market recovering and stabilizing in 2014, ESOP’s became very popular in the financial sector. ESOP’s are a tool for the retention and motivation of…","html":"<p>With the market recovering and stabilizing in 2014, ESOP’s became very popular in the financial sector. ESOP’s are a tool for the retention and motivation of employees, and the return to strong markets encouraged firms in the financial services to issue ESOPs to retain their top talent. </p>\n<p>The <strong>ESOP retention tactic</strong> was not just popular with private banks, but are also became more popular with state-owned banks. This is evidenced in the example of the <em>Bank of India</em> who considered issuing ESOP’s to their employees. Public banks have difficulty retaining talent, compared to private financial institutions, and are hoping their ESOP’s will have a positive effect on the retention of their talent pool.</p>\n<p><a href=\"http://www.business-standard.com/article/markets/private-lenders-use-stock-option-bait-to-retain-talent-114091101043_1.html?\" target=\"_blank\" rel=\"nofollow noopener\">Read the article here.</a></p>\n<h3>Takeaway:</h3>\n<ul>\n<li>Post 2008, talent is less likely to be incentivized by loyalty. ESOP’s are a more attractive mechanism to retain talent.</li>\n</ul>","frontmatter":{"title":"ESOP's Become Increasingly Popular in the Financial Sector","date":"October 28, 2015","description":"With the market recovering and stabilizing in 2014, ESOP's became a tool for the retention and motivation of employees especially in the financial sector.","author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal","bio":"Rajah Lehal is Founder and CEO of Clausehound.com.  Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.","image":{"childImageSharp":{"fluid":{"base64":"data:image/jpeg;base64,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","aspectRatio":1,"src":"/static/d7bbad08c257f3987a4a5710553e9e17/bdd4d/Rajah.jpg","srcSet":"/static/d7bbad08c257f3987a4a5710553e9e17/2b9ee/Rajah.jpg 80w,\n/static/d7bbad08c257f3987a4a5710553e9e17/e5d64/Rajah.jpg 160w,\n/static/d7bbad08c257f3987a4a5710553e9e17/bdd4d/Rajah.jpg 320w,\n/static/d7bbad08c257f3987a4a5710553e9e17/6e63d/Rajah.jpg 400w","sizes":"(max-width: 320px) 100vw, 320px"}}}},"tags":["ESOP","Purpose of Option Plan","Human Resources","Rajah"]}}},"pageContext":{"slug":"/esops-become-increasingly-popular-in-the-financial-sector/","previous":{"fields":{"slug":"/docstoc-is-shutting-down-and-urging-users-to-download-their-documents-before-closure/"},"frontmatter":{"title":"Docstoc is Shutting Down and Urging Users to Download Their Documents Before Closure","tags":["Tech News","Commercial Activities","Rajah"],"author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal"}}},"next":{"fields":{"slug":"/employment-inducement-awards-for-chief-executive-includes-acceleration-clause-in-stock-option-plan/"},"frontmatter":{"title":"Employment Inducement Awards for Chief Executive Includes Acceleration Clause in Stock Option Plan","tags":["ESOP","Acceleration","Human Resources","Rajah"],"author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal"}}}}}}