On Monday, an internal e-mail from its founder Ritesh Agarwal said that hospitality firm Oyo is granting employee stock ownership plans (ESOPs) worth a total of around Rs 130 crore to all its furloughed employees impacted by the COVID-19 pandemic as part of its efforts to minimize the disruption being experienced by them.
Why Would This Happen?
Before this, on 8 April, Oyo founder and Group CEO Ritesh Agarwal had said in a letter and video message that the company will place a certain number of employees on furloughs or temporary leaves, globally.
As per the sources, the number of furloughed employees globally could run in thousands.
So far, the company did not share any details regarding the number of impacted employees.
Who Will Get Impacted?
On Monday, in an internal town hall note to the impacted employees, Agarwal said that while he hoped that the company can get as many employees back, he is cognisant of the practical reality that the uncertainty around the COVID-19 situation will continue for some time.
He further added, “I would like to recognize your contributions and this love and passion for Oyo by making you a co-owner and shareholder of the company. I would like to inform you that all impacted Oyo Preneurs would be eligible for ESOPs worth around Rs 130 crore ( around $18 million),”.
He said that details on employees” specific grant will be shared on e-mail separately, which will be detailed as per their band and geographies.
Further, Agarwal said, “In addition, we also understand that some of you may already have stock options. For those employees, we are dropping the one-year cliff on the vesting of stock options for everyone we have hired in the past year. This will ensure that everyone departing, regardless of how long they have been with OYO, can become a shareholder,”.
Moreover, the company will also provide stocks to employees not impacted, thereby making 100 percent team members co-owners, he added.
What Does Oyo Say?
Mr. Agarwal said, “This is the first time in the history of the company that such a large part of the organization is being inducted as a stakeholder. That too at a time when some of you may decide not to be part of our future. This is a small token of gratitude from us for your contribution in building this company and for your unwavering support to us in good as well as bad times,”.
Also, foreseeing the uncertainty around the timelines for complete business revival, the company has also announced placement support for furloughed employees, keen to explore opportunities outside of the company or industry.
Further Mr. Agarwal added, “The organization will also come up with an institutionalized placement support system for those who wish to avail it,”.
Oyo is also actively working with the company’s investors to identify opportunities in their portfolio companies and help its employees with alternative career opportunities in those companies, he said.
Mr. Agarwal said, “I am happy to share that in Japan, we have helped about 150 Oyopreneurs through this route,”.
Apart from that, the company has also formed an emergency fund for the employees who may need it for some critical illness cases, he added.
Further, Agarwal also said he was extremely sorry for the impact, and added that he wanted to re-emphasize that “this is not your fault in any way. This is a scary and tough time for all of us in different ways.”
Also, he added, “I am privileged to have worked with all of you. Thank you for helping the company get where it is today and for being an integral part of our company. Thank you for being a part of our lives. Thank you for coming to Oyo. We are all better because of it.”
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