What Are The Advantages Of ESO?

For those who are unaware, ESO stands for employee stock options and now that the modern employee has become more savvy than ever when it comes to their financial affairs, the time has come for more employers to consider the advantages that are associated with ESO.

These advantages serve to benefit both the employees who receive them and the companies that offer them. While there are some who consider ESO to be a relic from the 1990s, when stock options for employees were all the rage, they remain an integral part of the equation for many modern companies. Let's take a closer look at the myriad of benefits that they can provide.

The 5 Primary Benefits of ESO

1. Attracting a Better Quality of Employee

When it comes to attracting the most talent to your company, you are going to need to consider the compensation packages that you are offering. If you cannot attract the type of employees that allow you to put your best foot forward, it may be due to your lack of employee stock options. The best employees like to feel as if they have an actual stake in the company and what takes place. With employee stock options, they are made to feel far more empowered than they normally would otherwise.

2. Employees Feel More Connected To The Business

If all your employees are doing is clocking in and clocking out each day and they have no further stake in what takes place going forward, how can you reasonably expect them to feel truly connected to your business? Those who wish to create an environment where employees actually feel connected to the day to day health and growth of their company are best served by offering them employee stock options.

3. Ability To Reap Financial Benefits of a Business' Success

Employees that are able to reap financial benefits of their own when a business is successful are far more likely to work harder to ensure that the business reaches its true potential. Having the ability to supplement their stated income with additional monies outside of what was originally expected is a huge boon for employers and employees alike, which leads directly to our next point....

4. More Competitive Job Offers For Small Businesses

Small businesses that are trying to make a name for themselves often struggle when it comes to attracting top quality employees, since they do not have the same ability to provide high end compensation as their more well heeled counterparts. That's why employee stock options are crucial, as they allow smaller businesses to bridge the gap and level the playing field when it comes to bringing aboard top tier talent.

5. Helping Employees To Start a Savings Plan

It is much easier for an employee to start the proper savings plan when they have additional income to work with and employee stock options are an excellent way to provide it. As an added bonus, employees who are less concerned about their current financial status are also far more likely to be happy and productive members of your work force.


Employee Stock Option Fund
(650) 262-6670
999 Baker Way Suite 400
San Mateo CA 94404 US

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ESO Fund takes the risk out of exercising stock options