JSW Group rolls out Rs 1,000-cr ESOPs for employees

By: |
August 10, 2021 3:00 AM

Calling it a first of its kind scheme in the manufacturing industry, JSW Steel will grant 13 million shares to all its employees, while JSW Energy will be granting 3.66 million shares. The shares are being given under two categories—OPJ ESOP Plan 2021 and OPJ Samruddhi Plan 2021.

Employees shall have four years to exercise the vested options.Employees shall have four years to exercise the vested options.

Sajjan Jindal-led JSW Group has rolled out a more than Rs 1,000 crore employee stock option scheme (ESOP) of 16.66 million shares for around 15,000 eligible employees from workmen to business leadership grades. The ESOP scheme is being rolled out to employees across JSW Steel and JSW Energy and covers all grades including workmen, junior, middle, senior management and business leadership, but the promoters are not eligible for the scheme.

Calling it a first of its kind scheme in the manufacturing industry, JSW Steel will grant 13 million shares to all its employees, while JSW Energy will be granting 3.66 million shares. The shares are being given under two categories—OPJ ESOP Plan 2021 and OPJ Samruddhi Plan 2021.

The group employees will pay the face value of the share at Re 1 per share and the difference between the effective stock price and the exercise price will be paid by JSW. The number of shares granted to an employee will be determined by their current grade and performance in the company. Employees shall have four years to exercise the vested options.

OPJ ESOP Plan is for senior management grade and above in the company and domestic subsidiaries. JSW Steel will be giving 5 million shares under this plan representing 0.21% of the issued capital of the company. JSW Energy will be granting 1.41 million shares to middle and senior management grade employees, representing 0.09% of the issued capital of the company.

Under the OPJ Samruddhi Plan, JSW Steel will be granting 8 million shares to employees of JSW Steel and its domestic subsidiaries in the workmen, junior and middle management grade. This represents 0.33% of the issued equity capital of the company. Under the same scheme, JSW Energy will grant 2.25 million shares to junior and middle management grade employees, representing 0.14% of the issued equity capital of the company.

“JSW Group is rolling out an initiative to help create wealth for all its employees through the implementation of Employee Stock Options. JSW strongly believes that the fruits of its success must be shared with every member of its employees. With this in mind, JSW has introduced a comprehensive ESOP Plan to reward employees with wealth creation opportunities, encourage high-growth performance and reinforce employee pride to be part of the JSW family. Also, this is the only ESOP plan across India’s manufacturing sector to be offered to all employees across rank and file,” a JSW Group official said.

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