2017-18 is the period when employees with stock options have been truly benefitting out of the several secondary exits that have taken place in the entire ecosystem.
Looking at the same, budget hotel chain OYO’s board has permitted the company to add 2,000 more stock options to its ESOP (Employee Stock Ownership Plan). The earlier limit of the plan stood at 6,893, but with the addition of these newly permitted options, the pool will reach 8,893.
The plan overseen by compensation committee of the board, was devised anew this year, namely 2018. This was done keeping in mind the growth of the company and the positive air around ESOPs in the market. The aim was to motivate the employees by giving them a share of the growth the organisation expects to reach.
This year, secondary share sale in many companies had brought tremendous monetary benefitst to the employess. Ola’s employees had gained $30 million in the Temasek deal; Paytm employees had earned $47.2 million when Discovery Capital made investments; 30 employees of Rivigo had made Rs 71 crore etc. And most recently Droom and Razorpay employees also benefitted through ESOPs.
OYO’s move to add 2,000 shares comes after these developments and hence becomes a strong tool to motivate employees, when there is exponential growth taking place in the firms and the future rewards for emloyees seem certain and significant.
This additional incentive for employees is bound to energise the employees to work their best to hitch a ride on the ESOP train to heavy rewards, and thus help both OYO in its rapid growth and expansion plans, plus bring a positivity in the work environment.
This development was first reported by ET.