ESOPS
Esop culture making India Inc top execs richer
Top executives at major Indian companies saw their wealth increase by over ₹10,300 crore due to successful employee stock options. Firms like L&T, Infosys, and ICICI Bank used Esops to reward and retain talent amid rising poaching. This trend reflects the growing importance of stock-linked incentives in compensation packages.
Cong questions ICICI's 'no salary paid' to Buch claim, asks why 'retiral benefit' non-uniform
The Congress on Tuesday questioned the ICICI Bank's assertion that it had not paid any salary or granted ESOPs to SEBI Chairperson Madhabi Buch after her retirement and asked that if the amount paid to her was her "retiral benefit", why was it non-uniform both in terms of its frequency and amount.
Not paid any salary or ESOPs to Madhabi Buch post-retirement: ICICI Bank issues clarification on SEBI Chief
ICICI Bank clarified that its group companies have not paid any salary or granted ESOPs to SEBI Chief Madhabi Buch post her retirement, other than retiral benefits. Congress alleges conflict of interest and demands her dismissal, claiming she has continued to receive income from ICICI Bank while holding the SEBI office since 2017.
Didn't pay any salary or ESOPs to Buch as Sebi chief, clarifies ICICI Bank
The lender also stated that during Buch's tenure with the ICICI Group, she was compensated through salary and other benefits in accordance with applicable policies. ICICI Bank highlighted that all payments made to Buch after her retirement were accrued during her employment with the group. These payments include ESOPs and retirement benefits.
Reliance Retail awards Rs 351 crore worth of ESOP to leadership team ahead of IPO
Reliance Retail awarded ESOPs to director V Subramaniam, chief executive for grocery retail Damodar Mall, president and chief executive of fashion and lifestyle business Akhilesh Prasad, president and chief business officer of electronics retail Kaushal Nevrekar, group chief business operations Ashwin Khasgiwala and chief executive of fashion ecommerce platform Ajio Vineeth Nair.
Market cap overhang a challenge for potential listing: PhonePe
Walmart-backed fintech major PhonePe on Wednesday said the market cap overhang is a challenge for the potential listing of the company and can not go to the market based on the current numbers and market share. He also said the company plans to enter the European market in the next five years.
- Go To Page 1
Tata Digital rolls out Esops for its senior execs to push performance
Tata Digital has launched a new employee stock option plan (Esop) for the top deck under chief executive Naveen Tahilyani amid significant turnover in the company's senior leadership. It is following new-age companies like Flipkart and Razorpay that employ Esops as a retention tool and a wealth-creating method for employees.
Tata Digital launches new Esop programme for its senior executives
Tata Digital introduced a fresh employee stock option plan for its senior executives, approved at the recent annual general meeting. The initiative, led by CEO Naveen Tahilyani, is designed to encourage a performance-based culture. The plan includes a minimum vesting period of three years and aims to increase revenue and improve consumer experience.
Religare confirms ED raids on its senior officials
Religare Enterprises Limited confirmed that the Enforcement Directorate raided the residences of top officials including Dr. Rashmi Saluja, Nitin Agarwal, Nishant Singhal, and Chirag Jain. The ED seized documents, including demat and bank accounts. The case stemmed from an FIR filed by an office assistant alleging fund siphoning. No incriminating evidence was found during the search. ESOP Shares of Care Health Insurance Limited were frozen, unrelated to the FIR.
Healthtech startup Visit Health announces Rs 250 crore fundraise, second Esop buyback
New Delhi-based Visit Health, a healthtech platform, has raised approximately Rs 250 crore. The startup will use the capital to expand its business. This is a combination of capital infusion and secondary purchase of shares. The company serves more than 400 companies, more than 4,500 small businesses and over 15 insurers through its cashless network of medical service providers.
Big LTCG gains for startups staff holding Esop in secondary deals
The reduction in long-term capital gains (LTCG) tax on unlisted securities announced in the Union budget stands to benefit startup staffers holding employee stock option plans (Esop). Founders and tax experts told ET that employees will gain if their shares are bought by an investor during a secondary funding round.
Zaggle Q1 Results: Cons PAT jumps multi-fold to Rs 16.7 crore
SaaS fintech platform Zaggle Prepaid Ocean Services on Tuesday reported a multi-fold rise in its consolidated net profit to Rs 16.7 crore in the June 2024 quarter. It had posted a net profit of Rs 2.05 crore in the year-ago period.
IRDAI orders Care Health to buy back esops given to Saluja
IRDAI emphasised that Saluja’s dual role as executive chairperson of Religare Enterprises does not exempt her from regulatory compliance. The issuance of stock options to her breached the IRDA Act of 1999 and related guidelines, the regulator stated.
Edtech startup Adda247 facilitates first ever Esop buyback
Google-backed edtech startup Adda247, founder and chief executive Anil Nagar said that this employee stock ownership plan (Esop) buyback represents a pivotal moment for the company. The edtech firm recorded revenue of Rs 243.39 crore in FY24 and has about one million paid users, aiming to increase this number to 1.7 million by the end of this year.
Strong momentum in new deals, improving utilisation likely to help Persistent to retain high growth
The stock of Persistent Systems staged a recovery on Monday with nearly 4% gain after losing over 6% on Friday following a sequential fall in net profit and contraction in operating margin for the June quarter. A ramp up in large deals, H1B processing costs and expenses towards ESOP took a toll on profitability.
Compensation gap between CEO & median employee widens in India Inc from pre-pandemic years, finds ET study
An ET study identified the widening gap in compensation between CEOs and median employees in 35 major Indian companies post-pandemic. Companies such as Hindustan Unilever, Infosys, and Tata Steel witnessed a significant increase in CEO to median pay ratios from 2019-20 to 2023-24 due to higher variable pay, bonuses, and ESOP-linked earnings, with ITC's ratio rising to 400:1 in FY24. Conversely, firms like Nestle and Bajaj Auto saw reductions. Modest median pay hikes and an abundance of low-cost entry-level resources impacted lower medians. Lateral hiring played a role in pay structures. Shriram Subramanian from InGovern attributes the trend to companies going global. Firms like Grasim Industries and HDFC Life Insurance also saw increases. Shareholders demand performance-linked CEO pay and fair wage practices.
ESOP taxation relief in Budget 2024: Govt may consider deferring tax to point of sale
As per present Income-tax provisions, taxability of ESOPs occurs at two stages. Firstly, at the time of allotment of shares and thereafter, at the time of sale of the shares. Thereafter, when employees sell the shares, gains from such sale is taxable as capital gains in the hands of the employees. The government may consider moving towards taxing ESOPs at one stage i.e. at the time of sale of shares, and doing away with taxation at the stage of allotment of shares. The government may also extend the deferral of tax payment on perquisite to all private companies instead of restricting the relief to eligible start-ups.
Dharana Capital mops up Rs 400 crore worth shares in Urban Company in secondary investment
Dharana Capital invested Rs 400 crore in Urban Company. The offshoot of Vy Capital acquired the shares from the at-home service platform’s employees and shareholders in an Esop liquidity plan.
Swiggy’s pre-IPO Esop sale; GST & ride-hailing apps
Food delivery company Swiggy will buy back Esops worth $65 million, its fifth such exercise. This and more on today’s ETtech Top 5.
IPO-bound Swiggy announces fifth Esop plan worth $65 million
Swiggy has cumulatively enabled over Rs 1,000 crore of Esops liquidity over the five events, benefiting more than 3,200 employees. Girish Menon, head of HR at Swiggy said, the latest Esop event is to acknowledge employees’ contributions and the food platform’s commitment to sharing its success and growth with them.
Swiggy announces $65 million ESOP programme for employees ahead of IPO
As part of the scheme, Swiggy employees across all levels and functions will have the opportunity to receive up to $65 million in liquidity for their ESOPs. This marks Swiggy's fifth liquidity event since 2018 and the third consecutive event following those in July 2022 and 2023. This positions Swiggy as one of the few start-ups consistently providing wealth-creation opportunities for its employees.
IRDAI puts Care Health Insurance on notice over ESOPs to Saluja
India's insurance regulator, IRDAI, has issued a show cause notice to Care Health Insurance, a subsidiary of Religare Enterprises, regarding the grant of stock options to Rashmi Saluja, who serves as the chairperson of Religare. The notice alleges that Care Health Insurance violated IRDAI directions by issuing stock options to Saluja despite prior refusal in May 2022. Saluja, an executive chairperson at Religare, was granted these options as an employee, though she is a non-executive director at Care.
JM Financial cuts Zomato's target price by 8% on ESOP costs
JM Financial has lowered Zomato's target price to Rs 230 from Rs 250, noting that ESOP costs are no longer considered one-off expenses following the approval of a new policy. The formulation of this policy indicates that ESOP costs will be treated as regular business expenses, expected to recur.
Zerodha to end zero-brokerage model; Unacademy lays off 250 employees
Online stock broker Zerodha will likely discontinue its zero-brokerage structure due to new Sebi rules. More on this in today’s ETtech Top 5.
Zomato gets shareholder approval for Esop plan, gives up pursuit of NBFC licence
Food delivery company Zomato had proposed an Esop pool of 183 million shares. The new plan would mean a 2% stake dilution for existing shareholders, founder and CEO Deepinder Goyal had told shareholders in May, adding that the new pool would be sufficient for the next five years.
Purplle closes Rs 1,000 crore funding deal led by Abu Dhabi Investment Authority
Purplle has also announced a Employee Stock Ownership Plan (Esop) liquidity programme and will offer liquidity of Rs 50 crore to its employees. Company cofounder and CEO said they will constantly innovate their technology to provide the best for their customer. Purplle is one of the fastest-growing retailers in the beauty and personal care (BPC) segment, having grown its GMV by four times over the last three years.
ESOPs exempt from GST, barring where foreign companies charge additional amount
The Central Board of Indirect Taxes and Customs (CBIC) clarified that multinational companies offering Employee Stock Purchase Plans (ESPPs), Employee Stock Option Plans (ESOPs), or Restricted Stock Units (RSUs) without additional charges will not attract GST. This decision benefits tech giants like Google, Microsoft, Oracle, and Walmart, alleviating tax litigation concerns
Nykaa grants 4.73 lakh shares under Esop scheme
FSN E-Commerce Ventures, operating Nykaa, allotted 4,73,138 equity shares under Esop scheme. Shares valued at Rs 8.08 crore. Managing director Falguni Nayar foresees $90-billion market growth.
Urban Company announces fifth Esop sale programme worth Rs 203 crore
Existing investors Vy Capital and Prosus Ventures, and Dharana Capital, an offshoot of Vy Capital, will be purchasing a majority of these shares from both current and former employees
Load More
