You are not obligated to participate if your company sets up an ESOP and offers you options, unless your employment letter suggests otherwise.
Key points:
No obligation: Participation in the ESOP is not mandatory unless specified in your employment letter.
No financial commitment: Participating in a standard call options scheme comes with no financial commitment from the option holder unless you decide to exercise your options. Exercising is optional, which means you have time to weigh up the decision while still being part of the scheme.
No loss: If the company is not successful and options have not been exercised, then there is no loss to employees participating in the company ESOP.
Disclaimer:
The information on this website is provided for general information only. Orchestra Limited does not assume any responsibility for giving legal or other professional advice and disclaims any liability arising from the use of this information. If you require legal or other expert advice, you should seek assistance from a professional advisor.