"In a growing company, ESOPs are being used to retain talent." Discuss.

ESOP is a sweetner given to an employee at the time of joining or may be later on. The company need not make any payment to the employee. The stocks are issued to an employee by the company based on the entitlement. Listed Companies can offer attractive Employee Stock Option (ESOP) or Employee Share Purchase Schemes (ESPS) to attract required talent pool and also to retain them. Being listed, the ESOP/ESPS may command good price gain and attraction to the employees. ESOP & ESPS are used to attract talent as well as to retain the key employees and managerial personnel which is an important human capital for business. In case the company is growing, the stock price keep on moving upward. The employee drives huge benefits from ESOP which may run beyond his emoluments otherwise. Such benefits helps the company to retain the talented employees for a longer period.