Walmart-owned e-commerce giant Flipkart’s announcement benefits at least 25,000 present and former employees with its one-time cash payout of 700 million-dollars, according to sources.
This will make Flipkart one of the biggest instances of wealth creation in India’s booming start up space.
Flipkart announced, last week, a one-time discretionary cash payout of as much as 700 million dollars to almost 25,000 of its former and present employees, who hold employee stock options.
The top 20 employees of Flipkart, the most senior and early staffers of the e-commerce giant, will be getting as much as 200 million dollars out of the 700 million dollar payout, sources told Moneycontrol.
Walmart and other investors in Flipkart are paying for the cash payout. However, Flipkart did not make any comment on the development.
The wealth-creation opportunity given by Flipkart towards its employees is one of the largest in the country to date in the private sector.
Among listed companies, software major Infosys pioneered employee stock programs, giving away about 19 per cent of outstanding equity to non-founder employees, amounting to around Rs 1.3 lakh crore.