This Indian Firm Gives Rs 1000 Crore ESOPs To Shop Floor Workers & All 16,000 Employees!
Employee Stock Ownership Plan (ESOP) is not a new thing. It has been used by the industry in various instances. It gives a sense of ownership to the employee, boosts his/her morale, and improves the profitability of the company as well. It is one of the most trustworthy tools to attract and retain talent.
Even though it is used widely throughout the corporate world, but seldom it happens that the ESOP is rolled out for all the employees in the company. Generally, Blue Collar employees are looked over while allotting ESOP.
First metals and mining group to roll out companywide ESOP
JSW Group became one of the few Indian companies that offer stock options to blue-collar as well as white-collar workers. It will help several thousand employees to generate wealth, the company said.
It should be noted JSW Energy and JSW Steel, have rolled out ESOP for 16,000 employees, offering over 16 million shares, the company said in the statement.
Dilip Pattanayak, president, human resources, JSW Group said, “It will cover all employees of the steel and energy unit, from the shop-floor employee to the middle level to top management.” At current market value, this is an over ?1,000 crore wealth-generation initiative, he added.
Employee Welfare Trust will be utilized for this program
JSW plans to implement the program through its employee welfare trust. The company will procure shares from the secondary market and allocate them to the employees on the days of vesting and exercise by the employees. The plan for the same was approved by its board and shareholders at the annual general meeting. “Since we are doing a secondary market purchase, there is no dilution to the existing share pattern. So I do not see any concern from our retail shareholders,” said Pattanayak.
The stock options will be vested over a period of four years wherein 25% each will be vested after the first and second year and the rest after the fourth year. Mr. Pattanayak also added, “We have the approval to go ahead with the plans for 1.30 crore shares in JSW Steel and 32 lakh shares in JSW Energy. This corresponds to 0.54% of our paid-up equity in JSW Steel and 0.20% of our paid-up equity in JSW Energy.”