The emergence of Equity linked compensation structures have led to emergence and development of Employee Stock Ownership Plans under which stocks and options are granted to employees based on ESOP plan and structure. This has led to newer challenges for Valuation of ESOPs for regulatory, compliance and tax purposes.An employee stock ownership plan (ESOP) is a qualified, defined-contribution employee benefit plan designed to invest primarily in the stock of the sponsoring employer. Employees can gain company ownership through a variety of ways, such as: buying stock directly through the company, receiving stock as a bonus, accepting stock options, or obtaining ownership through a profit-sharing plan. The employer also benefits through a variety of tax benefits.

ESOPs are often used as a corporate finance strategy and are also used to coordinate the interests of a company’s employees with those of the company’s shareholders. Stock ownership packages can increase participant interest regarding company performance and share price appreciation. Participants who are interested in seeing a positive stock performance are believed to act in a manner that suits the shareholders, as the participants themselves are also shareholders.

The fair market value of a privately-held stock is not as readily determined as the value of publicly traded stock investments. The stock price of an ESOP-owned company is more accurate when valued by specialized teams, like Resurgent’s, who understand the various valuation methodologies

Estimating the value of equity awards and share-based payments depends on a number of variables and often requires complex modeling to incorporate unique terms and complex risks. Resurgent assists both public and private organizations with stock compensation planning and financial reporting. Resurgent offers the following services:

• ESOP Valuations for Accounting And Disclosure Purposes
• Advisory services concerning ESOP Planning , Feasibility and Scheme Formulation
• Structuring Of ESOPs
• ESOP Appraisal review
• ESOP related Dispute and Litigation Services
• ESOP second stage transactions.
• ESOP Valuations for Perquisite Taxation