Many businesses are still struggling with how they provide the rewards and compensation to their employees evenly. The secret is to give them a full-source of company and employee management, in which the outsource company secretary can assist. A company secretary will serve as the communicator, facilitator, and legal advisor to the shareholders and board with ongoing communications with the regulatory authorities.

The duties

The duties of a company secretary are:

• Working closely with the Directors
• Informing the company of any responsibilities and restrictions imposed
• Providing practical guidance and support (including corporate governance guidelines)
• Assisting administration and governance of the company
• Pure administrative role advising the board on:
  • Procedures
  • Corporate governance
  • Strategy
  • Decision making

All these are the duties and responsibilities of the company secretary, in which you can outsource a reliable person online to hire.

How can the company secretary help the company?

A company secretary will work on the duties and responsibilities for the company. It also discusses the current situation of the company that affects the employees. Thus, an employee share option plan is included as the employee benefit plan.

The employee share option plan is also known as ESOP or Employee Share Option Plan, which is issued by the company for the employees to encourage employee ownership within the company. The companies’ shares are given to the employees at a discounted rate.

ESOP – how does it work?

A stock option is being offered by the company giving the employees the right to buy or purchase a specified amount of shares in the company, which is agreed upon the price on a specific date. To be clear, employees are not obliged to purchase all or any part of the number of shares written in the option. It is the employees’ choice and decision, will they purchase stock within the period when offered or on the last exercise date.

A company will set up a trust fund in an ESOP. It contributes new shares of its own cash or stock to buy existing or new shares. The company will make cash contributions to the plan and repay the loan. Various types of stock options provide employees to convert all or part of the compensation package to capital gains.

Pros of employee stock options

Employee options have pros. It offers employees the opportunity to have ownership in the company where they are working and feel more connected to the business and to their co-workers. Employee stock options offer a cost-effective company benefit that helps make the employment package more attractive.