Wipro, a major IT company in India, has distributed 1,27,616 restricted stock units to certain employees under the company’s 2004 Restricted Stock Unit Plan. The grant is effective as of August 11.
As per an exchange filing, the scheme comes under the 2007 RSU plan and 84,389 under a 2004 RSU scheme of the company. RSUs are typically awarded to employees once certain employment conditions or performance targets are met and they have a vesting plan and schedule for distribution.
Wipro stated that the restricted stock units (RSUs) will vest according to the schedule approved by the Board’s Governance, Nomination, and Compensation Committee, and can be exercised over the period approved by the Committee. However, the company is still to disclose the details of the exercised price or the vesting period on the same.
Wipro experienced a decrease in employee turnover during the first quarter of the fiscal year 2023, with a rate of 23.3 per cent on a quarter-to-quarter basis. However, it was still higher than the same period in the previous year.
Reportedly, Thierry Delaporte, CEO, Wipro, stated during an earnings call that the company’s investments in talent are starting to pay off, and that the move to a quarterly promotion cycle and salary increases for eligible employees will be effective in 2022.
In the quarter, Wipro hired 15,446 employees, including over 10,000 new graduates. The company’s leaders have previously stated that employee turnover has a significant impact on its cost structure, as new hires are often brought on at a premium of 25-30%.
Wipro announced that it will be providing promotions to employees at the mid-management level on a quarterly basis starting in July 2022, and salary increases will be implemented in September 2022.
