Can someone please elaborate on how the distribution/allotment of ESOP’s work in a start up? I shall be joining a start-up soon and have negotiated for it. In the offer letter they have mentioned the number of shares that i shall be allotted. So can you please throw light on
1) Ideally when will/should the shares be allotted to me? Is there any time frame for that?
2) Will i have to pay certain amount for it?
3) Can they go back and say you are not eligible for ESOP citing some technical reason or other.
4) Is there any recourse if they do not honor this inspite of clearly mentioning it in the offer letter.
or somebody can just give an insight as to how the entire thing works so that it helps all of us who are working for start ups for the first time…..