Vodafone Idea has launched a new employee stock option plan for employees. The plan named ‘Vodafone Idea Employee Stock Option and Performance Stock Unit Scheme 2024,’ will issue up to 34.85 crore shares, representing 0.50 per cent of the company’s equity share capital.
The scheme has received approval from the company’s board of directors and will be extended to eligible employees of Vodafone Idea, including those in its subsidiaries and associate companies.
Under the plan, the exercise price for stock options will be determined based on the market price of the shares one day before the grant date. For performance stock units, the exercise price will be based on the share value on the grant date. Eligible employees will have a maximum period of five years to exercise their granted options and performance stock units, although this period may be adjusted by the Nomination and Remuneration Committee in compliance with applicable laws.
Each exercised option or performance stock unit will entitle the holder to one share with a face value of Rs 10.
Recently, in March 2024, Vodafone announced 2,000 job cuts, following a change in its management. The move was said to be a part of its cost-saving measures to trim “personnel costs.” The scale of the cuts represented nearly 13 per cent of the total workforce. However, it was not merely a matter of downsizing; but repositioning itself.
The company intended to allocate resources to promising sectors such as cloud services and smart home solutions, potentially increasing staff in these areas.
