Employee Stock Ownership Programs (ESOPs) have seen a rise across startups. Why are startups doing it, and how does it work? ESOP buyback is a liquidity event for qualified employees, which allows them to sell shares they hold back to the company and create wealth for themselves. Creating a good ESOP policy helps both to retain and attract talent. ESOP buybacks are offered to employees during hiring, appraisal, or a reward program. After a vesting period, the company offers to buy back the shares, creating wealth for employees. Since January 2020, at least 24 startups have facilitated ESOP buybacks. The most recent examples are Acko, Razorpay, Cashify, Zetwerk, Browserstack, Wakefit, and CRED.