Understanding IT sector

Just a few points that come to my mind. I could be totally wrong in some.

1. There’s a notion that you shouldn’t put all the eggs in one basket. If the company gets into bad situation it will result in both the person’s layoff and stock price freefall. So people tend to sell off esops.
2. Also esops are a regular thing. So even if I sell now I will get some more in the next period. And I can always buy it from mkt when I feel it’s undervalued.
3. Higher the position, higher will be the esops percentage in ctc. CEO may get 90% of his package in esops. To keep his lifestyle, kids education, real estate investments he will have to sell. Similar thing panned out in case of VV of idfc first bank.
4. Despite all this, employees ESOP may not be more than 1% of total market cap. And I think ESOP and it’s % need to be approved by shareholders. So high % ESOP will be shot down anyway.