Nina Teng - 2024 State of ESOPs in Asia

The 2024 State of ESOPs in Asia Report

I'm excited to share the launch of The 2024 State of ESOPs in Asia, a comprehensive industry report I co-authored in collaboration with Saison Capital, XA Network, and Carta. Building on the success of a 2021 study, this updated edition offers a deep dive into how employee stock option plans (ESOPs) are evolving across Asia’s startup ecosystem. Based on responses from 160 startups across Southeast Asia and India, this study provides a broad and representative view of how ESOPs are being implemented and understood in today’s market. The insights from this study directly inform my dissertation research on how startups in emerging markets design equity incentives and navigate talent retention under resource constraints.

Download the full report here: www.stateofesops.com

2024 State of ESOPs in Asia.pdf

Against the backdrop of a funding downturn and shifting talent dynamics, our 2024 research highlights how ESOPs are becoming a strategic tool for attracting and retaining talent, promoting ownership culture, and improving startup competitiveness.

📊 Key Insights from the 2024 Report:

78% of startups in Asia now offer ESOPs, up from 62% in 2021 — with 92% implementing them before Series A, showing stronger early-stage planning.
Inclusion is rising: 1 in 3 startups now offer ESOPs to all employees, not just senior management.
More favorable terms: Over 50% of startups offer low or negligible strike prices, and monthly vesting has jumped from 13% to 44% since 2021.
Knowledge gaps remain: Fewer than 30% of founders report a deep understanding of ESOPs, underscoring a major area for improvement.
Liquidity matters: Only half of startups offer accelerated vesting in a liquidity event, with a sizable number still letting unvested options lapse — a missed opportunity to reward teams.
Employees value ESOPs: 72% say stock options increase their sense of ownership, and 60% say it makes them more likely to stay longer.

The report includes practical guidance for startup founders and employees alike, along with detailed data on vesting schedules, strike price discounts, exercise periods, and policies that align incentives while promoting fairness.

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