Tata Motors will issue performance shares to its employees and the staff of its subsidiaries as part of a long-term incentive scheme. These performance shares are a kind of reward given to employees who manage to fulfil specific performance objectives. Issuance of these shares has been given the nod by the Board of Directors of the Company.
Approval from the shareholders is awaited at the annual general meeting of the Company. Though similar to employees stock options, performance shares are not part of the compensation.
These shares will be issued to eligible staff members as per the SEBI (Share Based Employee Benefits) Regulations, 2015 not exceeding 0.25 per cent of the Company’s issued share capital.
Last month, the automotive company had announced that it would pay half the basic salary to the families of employees who have lost their lives to COVID. The dependents will keep receiving this payment till the retirement age of the deceased employee. This will be in addition to the one-time payment of 20 months’ basic salary, offered as immediate relief. The Company has lost about 47 employees to the pandemic so far.
Recently, Tata Motors had also announced its intention to offer COVID-19 Insurance coverage to its dealer partners and dealer staff across India.
The Company was in the news two days ago when Guenter Butschek, the CEO and MD, Tata Motors, announced plans to step down with effect from June 30, 2021. Girish Wagh will be appointed as the executive director to the board of Tata Motors with effect from July 1, 2021.