Tata Motors’ board of directors has approved issuance of performance shares to its own employees and the employees of its subsidiaries under the long-term incentive scheme.
Employees are given performance shares as a type of reward if specific performance goals are attained.
Incentive Awarded To Employees
Incentive Awarded To Employees
These are similar to employee stock options (ESOP) but are considered as a reward unlike ESOP which are part of the compensation package.
“The Board of Directors, at its meeting held on June 23, based on the recommendation of Nomination and Remuneration Committee, approved the Issue of Performance Shares and/or Options to the eligible employees of the Company and its subsidiary companies as per the SEBI (Share Based Employee Benefits) Regulations, 2015 not exceeding 0.25% of the Company’s issued share capital,” Tata Motors said in a statement.
The initiative is contingent on shareholder approval at Tata Motors’ upcoming Annual General Meeting.
Performance Based Shares
Two years ago Infosys gave its employees 5 crore shares, amounting to 1.15 percent of the company’s equity shares.
These were given out based on the employees’ performance.
Tata Motors’ consolidated net loss for FY21 increased to Rs 13,395 crore from Rs 11,975 crore in FY20.
On a stand-alone basis, the company reduced its net loss to Rs 2,395 crore in FY21, compared to Rs 7,289 crore in FY20.
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