Tech winter dulls the shine of employee stock ownership plans

FALLING tech valuations across South-east Asia have dulled the attractiveness of Employee Stock Ownership Plans (Esop) for startup employees. Expectations of making a windfall from these instruments, like in Silicon Valley lore, are lukewarm in the current climate.

Regional unicorns that have gone public – including Grab, GoTo Group and Bukalapak– have fallen in value amid weak market sentiment, and there are no Esop “jackpot” stories to excite employees. For mature startups that remain private, the prospects of doing an initial public offering (IPO) in the near term are uncertain.

Some tech workers are dissatisfied with the returns from Esop after their employers listed.