Difference Between ESOP, Sweat Equity, and Phantom Stock in India: Practical Comparison for Founders, CFOs, and Compliance Teams

Equity-linked rewards are shaping how Indian startups attract and retain talent. This guide explains the key differences between ESOPs, Sweat Equity Shares, and Phantom Stock Plans — including legal framework, compliance under the Companies Act, 2013, valuation rules, and taxation impact for Indian companies in 2026.