Bengaluru: Flipkart has introduced a new set of plans, viz. the employee stock ownership plan (ESOP), for its middle and senior-level staff, many people privy to the event said, to retain the key talent.
The overall stock allotted, which is estimated to be in the range of $100 million, was distributed to selected employees across Flipkart and Myntra-Jabong. The ESOP dispersion took place as a part of the company’s annual performance assessment programme, which ended last month. Employees who have been granted these fresh shares at the rate of $125–130 per unit, will get complete ownership of 25% of their stocks after a year, post which monthly vesting will take place for 3 years.
“The amount of ESOPs which has been granted is different for different employees.,” said a company representative.
“The grants have been given out to people who have been either promoted or are high performers. The company is also using it selectively as a retention tool for critical talent amid all the reorganisation that has come about in the past year.,” the person added.
“Today, Flipkart is competing with the likes of Swiggy and Oyo, which are looking for talent which has seen businesses scale. Therefore, there is an increasing need for Flipkart to retain employees”, said Kamal Karanth, co -founder of Xpheno, a specialist staffing firm.