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Paytm Parent Grants Stock Options and Equity Shares to Employees
SUMMARY
⏺ Paytm parent company, One97 Communications, grants stock options and equity shares to employees. This is likely done to incentivize and retain employees by giving them a stake in the company's success.
⏺The grant includes 91,250 stock options under ESOP 2019 (allowing future share purchase) and 2,91,388 equity shares (direct ownership). The majority of shares (2,86,997) were granted under the recent ESOP 2019 scheme.
⏺ Stock options have an exercise price of Rs 9 per share. This allows employees to potentially benefit from future share price increases if they choose to buy shares. The allotment of both options and shares happened on April 4, 2024.
One97 Communications, the parent company of digital payments giant Paytm, announced a grant of stock options and equity shares to its employees on Friday. This move aims to incentivize and reward employees for their contributions to the company's success.
Stock Options Under ESOP 2019
The company's Nomination and Remuneration Committee approved the grant of 91,250 stock options under the One 97 Employees Stock Option Scheme 2019 (ESOP 2019). These stock options offer eligible employees the right to purchase Paytm shares at a predetermined price in the future.
Equity Share Allotment for Eligible Employees
In addition to the stock options, One97 Communications also allotted a total of 2,91,388 fully paid-up equity shares with a face value of Rs 1 each to eligible employees. This allotment combines shares granted under both ESOP 2008 and ESOP 2019.
Breakdown of Allotted Shares
Out of the total equity shares allotted, 2,86,997 were granted under ESOP 2019, directly rewarding employees associated with the company's recent growth. The remaining 4,391 shares were allotted under the earlier ESOP 2008 scheme.
Exercise Price and Issuance Date
The stock options granted under ESOP 2019 have an exercise price of Rs 9 per share. This pre-determined price allows employees to potentially benefit from future share price appreciation if they choose to exercise their options. The allotment of both stock options and equity shares became effective on April 4, 2024, as per the official stock exchange filing.
Employee Incentive and Retention Strategy
This grant of stock options and equity shares signifies One97 Communications' commitment to its employees. By offering equity ownership opportunities, the company incentivizes employees to be invested in the company's long-term success. This approach can contribute to increased employee morale, engagement, and retention.
One97 Communications' decision to grant stock options and equity shares highlights the company's focus on fostering a culture of ownership and rewarding its employees for their contributions. This strategy is likely to play a key role in attracting and retaining top talent as Paytm continues to navigate the dynamic digital payments landscape.