1. What is ESOP?

An Employee Stock Ownership Plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock. Capgemini offers ESOPs as part of its compensation package.

2. How Does the Calculator Work?

The calculator uses the basic ESOP valuation formula:

Where:

• Number of Shares — The total shares allocated to the employee
• Current Share Price — The market price of Capgemini shares
• Vesting Percentage — The percentage of shares that have vested

Explanation: The equation calculates the current monetary value of your ESOP based on vested shares.

3. Importance of ESOP Calculation

Details: Understanding your ESOP value helps in financial planning, tax calculations, and assessing your total compensation package from Capgemini.

4. Using the Calculator

Tips: Enter the total number of shares granted, current market price per share, and the percentage that has vested (100% for fully vested shares).

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my ESOP details?
A: Log in to the Capgemini portal to view your ESOP allocation and vesting schedule.

Q2: How often should I calculate my ESOP value?
A: It's recommended to recalculate whenever the share price changes significantly or when additional shares vest.

Q3: Are there tax implications for ESOPs?
A: Yes, ESOPs may have tax consequences when shares vest or are sold. Consult a tax professional for advice.

Q4: What happens to my ESOP if I leave Capgemini?
A: Typically, you'll have a limited time to exercise vested options after leaving the company.

Q5: Can I sell my ESOP shares anytime?
A: There may be restrictions on when you can sell shares. Check the specific terms of your ESOP plan.