Stock options provide employees the opportunity to buy shares at a fixed price for a set period of time. ESOP shares are part of employees’ remuneration for work provided for the company. It can be used to keep plan participants focused on company performance and share price appreciation. Employees are provided with such ownership often with no upfront costs. The provided shares may be held in a trust for safety and growth until the employee retires or resigns from the company. Once an employee retires or resigns, the shares are given back to the company for further redistribution or are completely voided.
A limited liability company with both foreign and Chinese investors, its functioning is regulated by the law.