ESOPs means, equity stok option plans. This is one of the component which creates an exorbitant CTC value for the HR team of a company to market, saying company is giving 2-3 crores worth of package. ESOPs other than being used by the HR guys, actually doles out ownership to its employees and gives them a sense of belonging with a stake. This will obviously, lead to improvement in their productivity because now they work for themselves rather than others, even though with the minuscule amount of shares they are far from ownership but simpletons will still work harder than ever before to get it. Now, if you dole it out easy the value will be lost and ofcourse you need to get the juice out of your employee before handing them with anything. So after granting the ESOPs at the grant date, they are entrusted with their fair share of slavery stipulation called vesting conditions. Usually, the conditions are based on either service or performance or both. Service conditions means those c...