Tech companies reward their employees in the form of not just incentives but also in the form of equity shares for their key contributions to growth.
Allotment
Similarly Infosys has allocated 5,11,862 shares to employees as stock options, the company announced on Sunday.
The allotment was done on May 12 under two employee-related schemes.
In its exchange filing on May 14, Infosys said, “This is to inform that the Company has allotted 5,11,862 equity shares on May 12, 2023, pursuant to the exercise of Restricted Stock Units by eligible employees.”
Post allocation issued and subscribed share capital increased to Rs 20,74,93,73,460 divided into 4,14,98,74,692 shares of Rs 5 each.
The shares of Infosys on Friday closed at Rs 383.60, down by Rs 0.27 per cent.
Purpose
The aim is to not just serve as a reward for their performance but to also expand employees’ ownership in the company.
Of the total shares allotted to the employees, 1,04,335 equity shares were allotted under the 2015 Stock Incentive Compensation Plan.
4,07,527 equity shares were given under the Infosys Expanded Stock Ownership Program 2019.
Reward through ownership
Infosys’ 2015 Incentive Compensation plan intends to keep and retain talented and critical employees while further encouraging employees to align individual performance with the company’s objectives.
Simultaneously it rewards employee performance with ownership proportionate to their contribution.
It also aligns employee interests with those of the organization.
To “incentivize, retain and attract”
The 2015 Incentive Compensation Plan has replaced Infosys’ earlier RSU Plan.
The Infosys Expanded Stock Ownership Program 2019 is to increase shareholder value by expanding employee ownership of the company, in order to incentivize, retain and attract key talent through this performance-based stock grant program.
Infosys is the third-largest company in India and second largest in the IT segment in terms of market value.
Currently, the company has a market cap of over ₹5.16 lakh crore.
