- Stock Options or ESOPs: Stock options gives the holder right to buy company shares at a pre-defined strike price in future irrespective of market price at that point in time.
- Phantom shares or VSOPs: These type of stock options are event triggered and the employees are entitled to get the cash payout in future at the event of start-up exit or IPO.
- Restricted stock units or RSUs: These are the common stocks issued at no cost to the holder at a certain point of time in future the name restricted is because it is subjected to pre-set vesting period which can be performance goals or tenure in the company.
- Warrants: These are the kind of options granted by one organization to another hence on exercise the corresponding stocks are received by the company not any individual. Companies usually issue warrants to banks, investors or any other third party firms upon entering a financial or commercial transaction.
- Stock appreciation rights or SAR: These provide the right to the increase in the value of designated number of shares; such an increase in value is payable by cash or company stocks.
