Employee Stock Option Schemes (ESOPs) and Employee Stock Purchase Schemes (ESPPs) are popular incentives offered by companies to their employees. ESOPs grant employees the option to purchase company shares at a predetermined price, usually at a discounted rate, after a vesting period. This aligns employee interests with company performance and can serve as a retention and motivation tool. ESPPs, on the other hand, allow employees to buy company shares at regular intervals, often at a discounted price, typically through payroll deductions. These programs enable broader employee ownership and participation in the company’s success. Both ESOPs and ESPPs can foster a sense of ownership, improve employee morale, and provide a potential financial benefit. They require careful design and compliance with regulatory guidelines to ensure equitable and tax-efficient distribution of shares to employees.