Structuring and Advisory Services for ESOP Implementation

We help organizations navigate complex financial structures. Recently, we successfully tailored an ESOP for a client, aligning it seamlessly with their team structure and long-term strategic goals.

All Case Studies

Client Overview: 

Our client is one of India’s fastest-growing chains of restaurants, with a dynamic presence across multiple cities. Known for its innovative menu offerings and exceptional customer experience, the brand has rapidly scaled its operations and attracted a loyal customer base. With ambitious plans for national and international expansion, the company recognizes the importance of nurturing talent and fostering long-term employee engagement.

The client sought our expertise to design an Employee Stock Ownership Plan (ESOP) that would serve as a powerful tool for attracting, retaining, and motivating employees at all levels of the organization, from the top-tier management team to frontline staff. As a fast-paced, high-growth business, they needed a flexible ESOP structure that could adapt to the evolving needs of their diverse workforce while aligning their team with the company’s broader vision of sustainable growth and success.



Challenges Faced:

- Challenges are simply invitations to discover better ways!

Understanding Team Structure

The client’s team consisted of a diverse mix of senior executives, mid-level managers, and employees across different departments. The challenge was to design an ESOP that would cater to both senior leaders and employees, each with varying roles, contributions, and expectations. 

Defining End Goals

The company wanted to incentivize long-term growth, but they also needed flexibility in how ownership would evolve over time. There was a need for a structure that was both attractive to current employees and future hires. 

Multiple ESOP Options

The client needed advisory support in exploring different ESOP options that would provide both tax efficiency and strategic alignment.

HSQ's Role and solutions

Hedge-Square took a holistic approach to understand the client's unique needs and challenges.

Team and goal allignment

We began by conducting in-depth discussions with key stakeholders to understand the composition of their team, their long-term business goals, and how an ESOP could contribute to their success. We mapped out the organization’s structure, identifying key drivers of success within each department and role. We worked with leadership to define both short-term and long-term objectives for the ESOP.

ESOP Structuring Advisory

Based on the team structure and business goals, we recommended multiple ESOP options. These included: Broad-based ESOPs for incentivizing mid-level and junior employees, aligning their goals with the company’s success. Performance-based ESOPs for senior management, linking equity awards to specific milestones such as revenue growth, profitability, or team-building targets.

Vesting and Exit Strategies

We advised on structuring a vesting schedule that would align employee interests with company growth, and also considered exit strategies for those leaving the organization.

Results and Impact

HSQ's comprehensive approach delivered measurable results

Incentivized Talent

Employees, from senior leaders to junior staff, felt more invested in the company’s future, leading to increased motivation and retention.

01

Aligned with Growth Goals

The ESOP was structured in a way that supported the company’s expansion and helped secure top-tier talent for future growth.

02

Flexible for Future Needs

The client now has an adaptable ESOP that can evolve as the business grows and their goals shift.

03

Conclusion

By deeply understanding the client’s team structure and long-term goals, Hedge-Square was able to provide expert advisory on a range of ESOP options. The result was a well-structured plan that not only motivated the workforce but also aligned ownership interests with company growth—ultimately setting the stage for continued success.