India's second largest technology giant Infosys has announced that it will offer up to 5 crore shares to employees as a part of an expanded stock ownership programme, in a bid to attract top talent.
India’s second largest technology giant Infosys has announced that it will offer up to 5 crore shares to employees as a part of an expanded stock ownership programme, in a bid to attract top talent. The Expanded Stock Ownership Program 2019 links long term employee incentives with shareholder value creation, said the firm. The shares, equating to 1.15% of the company’s equity shares (about Rs 3,700 crore) would vest on challenging criteria, said Infosys. Infosys said that it has been a pioneer in India, rewarding its employees through stock ownership programs starting in 1994, including the 2015 Incentive Compensation Plan.
Sharing the conditions under which the stocks would vest Infosys said that the challenging performance criteria includes a relative Total Shareholder Return (TSR) against an industry peer group, b) relative TSR against domestic and global indices and c) operating lead performance metrics such as total revenue and digital revenue growth, and operating margins. Notably, the stock rights would vest only after a period of 7 years. . The 2019 Plan shall be effective on and from the date of receipt of approval of the shareholders.
Sharing the key benefits from the plan, Infosys CEO Salil Parekh said the employees get an opportunity to be beneficiaries in the long term success of the company and realize the results of their work and dedication. “Our employees are our biggest asset, and through this program we aim to recognize and reward individuals who are committed to driving value creation for all stakeholders through their continued and consistent performance,” he said in a press release.
Apart from the ESOP for employees, the firm has also announced a grant of stock incentives to CEO Salil Parekh and UB Pravin Rao, Chief Operating Officer and change in terms of appointment of Salil Parekh, CEO and Managing Director. Infosys has proposed to grant annual performance-based stock incentives in the form of restricted stock units having a current market value of Rs 10 crore to Salil Parekh and Rs 4 crore to UB Pravin Rao. This shall vest in 12 months from the date of each grant. The vesting of the 2019 Annual Performance Equity Grant will be as per the performance criteria as mentioned in the 2019 Plan, said the firm.