sweat equity is the best form of reward for those who contribute to th
QUESTION
sweat equity is the best form of reward for those who contribute to the growth of a company
Solution: Sweat equity shares are equity shares given the company to its employees on favourables terms such as a discount on current market price or in consideration in return to their contribution towards the company in a major way and recognize their work.It is regarded as the best form of reward for those who contribute to the growth of the company as they will become part-owners and now will also share the profits of the¦
mpany, rather than only earning the salary. Companies however, resort to issuance of sweat equity shares in order to retain the best talent and assure the financialinvestors that the employees who contribute to the companys success would be a part of the company in the long run too.
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