Reliance Communications, the Anil Dhirubhai Ambani flagship, on Sunday announced an employee stock options (Esops) scheme for 20,000 employees of the company and its subsidiaries. Claiming that the scheme would be the largest in the Indian telecom sector, the group said the initiative was in line with its policy ?to create value for stakeholders ? external and internal?. The ESOS Compensation Committee of the board of directors of the company approved grant of 17.5 million options to eligible employees based on specified criteria, stated a company release.
Reliance Communications? shareholders had passed the resolution of grant of securities under the ESOS scheme last year. The ESOS compensation panel was then constituted to administer the ESOS.
Anil Dhirubhai Ambani, chairman, Reliance Communications said, ?The employee stock option scheme truly recognises the efforts of our employees and aims to reward them for contributing towards the transformation of Reliance Communications as the most profitable Indian telecom enterprise, and among Asia?s Top five most valuable companies within a short span of two years.?
The release added that the company conducted extensive research based on intricate scientific models to formulate an innovative 3-Tier Model, that would consider multiple parameters to derive at the number of options to be granted to every individual employee. The three-tier model, incorporating global best practices, would consider multiple parameters including number of years in the company, role, contribution and experience amongst others while categorization under ?Founder?s Club?, ?Pioneer?s Club? and ?Growth Club?.
Each option would be exercisable into equal number of fully paid-up equity shares of Reliance Communications. The options will vest at the end of one year from the date of grant and shall be eligible for exercise up to a period of nine years from the date of vesting as prescribed in the exercise schedule of the respective plan(s).