Staff of e-commerce giant, Flipkart, will now be able to enjoy an incentive that allows them to sell 10 per cent of their employee stock options or ESOPs, at the rate of Rs 9000 to Rs 9300 ($125 to $130) per unit. In 2018, when Walmart took over Flipkart, the employees were allowed to sell up to 50 per cent of their holdings at almost the same rate.
The Company is expected to spend about $100 million in this buyback scheme.
The offer of such liquidity to the staff is just another step by Flipkart towards retaining its key talent.
In 2017 too, Flipkart had organised a $100 million ESOP buy-back scheme, wherein it bought back stock options at $85.20. At that time, the existing staff was allowed to sell 25 per cent of their vested options, while ex-employees were allowed to sell only up to 10 per cent.
It is common for organisations to allot shares to their employees as a form of appreciation for their hard work. At regular intervals, the companies also allow employees to sell these shares in order to enjoy some financial gain. With the steady growth of the company, the share value also goes up. The companies then reward their best performers with these shares, making them shareholders and strengthening their feeling of belongingness.
Value our content... contribute towards our growth. Even a small contribution a month would be of great help for us.
Since five years, we have been serving the industry through daily news and stories. Our content is free for all and we plan to keep it that way.
Support HRKatha. Pay Here (All it takes is a minute)