Financial services major Reliance Capital today announced a major ESOP scheme under which select employees across various group units will be granted stock options with a notional value of Rs 300 crore. The scheme is part of Reliance Capital’s Rewards Programme aimed at retaining and incentivising key employees for their contribution to the growth and profitability of the company. Reliance Capital is part of Anil Ambani-led business conglomerate Reliance Group and is present in insurance, mutual fund, broking, non-banking finance businesses, among others. The ESOPs will be given to a total of 500 employees of Reliance Capital and its business units, including Reliance Nippon Life Asset Management, Reliance Commercial Finance, Reliance Home Finance, Reliance Nippon Life Insurance, Reliance General Insurance and Reliance Securities. “The ESOPs comprise of 9,21,000 shares of Reliance Capital plus shares/Phantom Shares of operating subsidiaries and associates,” Reliance Capital said in a regulatory filing to the stock exchanges.
The notional value of the proposed stock options, at Rs 300 crore, represents 1.6 per cent of Reliance Capitals market capitalisation. The employee stock option plan (ESOP) 2017 has been approved by the boards of Reliance Capital and respective group companies.
The options will be granted over a period of four years with customary lock-in period. “We are delighted to offer ESOPs that will enable our key talent to participate in the long term wealth creation opportunities, linked to the growth of the company. “The scheme will help us attract, retain and reward talent and also align the employees’ sense of ownership with the company,” Reliance Capital Executive Director Anmol Ambani said. Shares of Reliance Capital surged 3.00 per cent to close at Rs 767.65 on the BSE.