Expertise

The right vehicle for the vision.

ESOPs, RSUs, SARs, or Phantom Shares? Stop guessing and start designing.

Not every company should issue traditional stock options. In fact, defaulting to a standard ESOP without evaluating your specific context is a recipe for strategic friction down the line.

Evaluating the Alphabet Soup

RSUs (Restricted Stock Units), SARs (Stock Appreciation Rights), Phantom Equity—the terminology can be overwhelming. Each instrument carries distinct implications for your cash flow, employee taxation, cap table dilution, and corporate governance.

If you are a bootstrapped, profitable SME with no intention of ever selling or going public, granting traditional ESOPs might create a trap where employees hold illiquid paper with massive tax burdens. In this scenario, a cash-settled Phantom Equity scheme or SARs might align far better with your reality.

The Feasibility Study

We conduct rigorous instrument feasibility studies prior to drafting any scheme. We analyze your corporate structure, growth trajectory, liquidity outlook, and overall philosophy (the "why") to recommend the exact mechanism that will best serve both the founders and the employees.

We don't force you into an ESOP box if you don't belong there. We find the vehicle that safely and transparently carries your intent.

Our Feasibility Assessment Checks:

  • Liquidity Horizons: Matching the instrument to your realistic IPO or M&A timeline.
  • Tax Efficiency: Finding the most optimal route for both corporate expense deduction and employee tax liability.
  • Control Dynamics: Balancing wealth creation with founder control and voting rights.

Let's find your vehicle.

Request a Study

FAQ

Frequently asked questions about ESOP instruments

What instruments does Just Esops compare in a feasibility study?

Traditional ESOPs, RSUs (Restricted Stock Units), SARs (Stock Appreciation Rights), and Phantom Equity — each with distinct implications for cash flow, employee taxation, cap table dilution, and corporate governance.

Why not default to standard stock options?

For some companies — particularly bootstrapped, profitable SMEs with no near-term exit plan — traditional options may leave employees with illiquid paper and heavy tax burdens. A cash-settled Phantom Equity scheme or SARs may align far better with your reality.

What does a feasibility study actually analyse?

Your corporate structure, growth trajectory, liquidity outlook, and the philosophical 'why' behind sharing value with your team — together, these determine which instrument safely and transparently carries your intent.

How is liquidity horizon factored in?

The study maps your realistic paths to IPO, M&A, or structured secondary liquidity — then matches the instrument design to a timeline your employees can actually believe in. An instrument that vests in four years but has no realistic exit in ten is a broken promise.

How is tax efficiency evaluated?

By balancing corporate deduction opportunities with employee tax timing and cash needs — finding the route that does not create surprise tax liabilities for employees or unnecessary complexity for the company.

What are control dynamics in instrument selection?

How the chosen instrument affects voting rights, cap table complexity, and founder control while still genuinely rewarding contributors. Some instruments allow value sharing without diluting voting power — relevant for companies not planning a traditional equity exit.

How do I request a feasibility study?

Use the Contact page and describe your company structure, stage, ownership intentions, and approximate employee count. The team will scope and conduct the study before any scheme is drafted.