Vedanta has introduced a new Employee Stock Option Scheme for 2026, replacing its decade-old ESOP Scheme 2016 with a programme in which option vesting is linked entirely to performance criteria.
The Vedanta ESOS 2026 provides for a maximum pool of 16.62 crore equity shares, equivalent to about 4.25 per cent of the company’s paid-up share capital. The exercise price has been set at the face value of Rs 1 per share.
Under the new scheme, all options will vest based on performance criteria determined by the company’s Nomination and Remuneration Committee. The vesting period can range from one to five years.
The new structure differs from Vedanta’s previous ESOP scheme, which included both tenure-based and performance-based components. The 2026 scheme moves entirely towards performance-linked vesting.
The options will be implemented through Vedanta’s existing ESOS Trust, which will acquire shares from the secondary market. According to the source, this approach is intended to limit dilution associated with fresh share issuance.
The scheme is designed to link employee incentives with longer-term business and shareholder outcomes, particularly as Vedanta operates in the cyclical metals and mining sector.
The source also notes that Vedanta has historically used broad-based ESOPs, with its five-year cumulative equity distribution reaching Rs 2,500 crore and covering nearly 40 per cent of its workforce, including mid-level and shop-floor employees.
