Max Healthcare Institute has allotted 12,363 equity shares among its employees. The allotment of ESOPs are said to be a part of Max Healthcare Institute’s employee stock option plan 2020. This strategic step was officially communicated to the public through a filing made to the stock exchange.
Each of these equity shares holds a nominal value of Rs 10. This action has led to a tangible increase in the company’s paid-up equity share capital, seeing it rise from Rs 9,71,41,72,330 to Rs 9,71,42,95,960.
Max Healthcare’s initiative to extend employee stock option plans (ESOPs) to its workforce is a common practice in the corporate world, with several companies adopting this approach to incentivise and reward their employees. ESOPs grant employees the right to purchase shares of the company at a predetermined price, often lower than the market value, thereby enabling them to become partial owners of the organisation.
ESOPs offer several advantages for both the company and its employees. For the company, it serves as a valuable tool to attract, retain, and motivate talent. By making employees stakeholders in the company’s performance, ESOPs encourage them to work collaboratively towards achieving the company’s goals and enhancing its value. This can result in improved productivity, innovation, and overall performance.
From the employees’ perspective, ESOPs provide an opportunity to share in the company’s success beyond their regular compensation. As the company thrives and its share value appreciates, employees stand to gain financially, creating a direct link between their efforts and their financial rewards. ESOPs also instil a sense of pride and commitment among employees, as they feel more connected to the organisation’s journey and accomplishments.
At 1:00?pm IST on Monday, the shares of Max Healthcare Institute were trading at Rs 565.35, marking a rise of 5.03 percent.