After Salary Cuts, All Oyo Employees Become Shareholders! ESOPs Rolled Out For All
Making Every Employee A Shareholder
Prior to this, the SoftBank backed Oyo Hotels & Homes was in talks due to salary cuts which have been implemented across functions and also putting some employees on a leave with limited benefits plan.
Now the hospitality unicorn has sent off a letter to employees claiming that they have decided to make every employee a co-owner and shareholder of the company by granting them ‘deeply discounted ESOPS.’
Who Will Get This Benefit?
Further, these letters have been sent to those employees who have been put on a leave with limited benefits plan as well as others who continued to work, as per the sources.
Earlier, Oyo announced the pay cuts and ‘leave with limited benefits’ options for its staff in India during the April month.
That time, the Oyo CEO Rohit Kapoor had said that the company is asking all its employees to accept a reduction in their fixed compensation by 25%, which will be effective for the April-July 2020 payroll period, in an email.
What Does Oyo Say?
While talking about the earlier happenings in the company, Kapoor said that the company had to take the “hard decision” of placing some employees on leave with limited benefits from May 4 for four months until August 2020.
Oyo has already confirmed the new developments.
The Oyo spokesperson said, “We have offered all our employees the deeply discounted ESOPs comparable to RSUs…This means all Oyopreneurs have been enabled to buy the stock of the company at a deeply discounted pre determined price of value and we are already seeking necessary corporate approvals,”,
“All 100% of RSUs would be vested at the end of one year from the date of the grant…Our efforts are in line to reward the employees for long term as they sacrificed their salaries to support the company during tough times,” they added.
“As part of the communication by Ritesh, we have decided to make every Oyopreneur a co-owner and shareholder of the company. You are receiving deeply discounted ESOPS (comparable to RSUs and referred as the RSUs) meaning that an option is given enabling you to buy the stock of the company at a deeply discounted pre determined price. These RSUs will have a strike price of Rs 10 per option. As part of the commitment, vesting would continue even if you leave your employment with Oyo which enables you to become a co-owner,” said a letter sent to one of the junior most employees.