Mumbai, Apr 26: The board of directors of ICICI on Monday approved an employee stock option scheme (ESOS) for the institution. Although the approval granted by shareholders at the annual general meeting held in 1993 enables issue of shares to employees up to 1 per cent of subscribed capital, the ICICI board has proposed that in keeping with best practices on corporate governance a fresh approval from the shareholders be obtained.The stock option to the employees will be available at the market price that prevailed on the day of the shareholders approval.Accordingly, the proposal for issue of shares up to 1 per cent of subscribed capital under ESOS would be placed for approval at the annual general meeting of ICICI shareholders scheduled for July 30, 1999.
Several companies in India and abroad have devised stock option schemes as a tool for motivating and retaining its highly prized employees.
ICICI's brand equity has been built on a reputation of strong financials, technology-driven businesses, tradition of excellent service and its unmatched pool of human talent, an ICICI release said. ICICI's net profit per employee and asset per employee is the highest in the Indian financial sector. While the assets and net profits have increased by about 400 per cent over the last seven years, the employee strength has largely remained constant at around 1200.
The foundation of ICICI's business is performance-orientation and accordingly, employee compensation is clearly tied to performance, the release said.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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