This effort is aimed at retaining and incentivising key employees for their contribution to the growth and profitability of the company.
Reliance Capital, which is part of the ADAG Group, will offer Employee Stock Options (ESOP), worth Rs 150 crore, to 250 employees. This is subject to requisite approvals.
The effort will retain and incentivise key employees for their contribution to the growth and profitability of the company.
“We are delighted to launch ESOPs that will provide long-term wealth creation opportunities to key talent, linked to the growth of the company. This will not only help us reward and retain talent, but also align the employees’ sense of ownership with the business,” says Amitabh Jhunjhunwala, vice-chairman, Reliance Capital.
Under the scheme, eligible employees will get options on RCL-listed stock and/or phantom shares of its businesses.
The ESOPs comprise 6,46,080 shares of Reliance Capital and the balance as phantom shares of operating subsidiaries. The grants have been approved by the Board of Directors of Reliance Capital and the respective group companies.
The scheme will be applicable to employees of Reliance Capital and its businesses — including Reliance Capital Asset Management, Reliance Commercial Finance, Reliance Life Insurance, Reliance Securities and Reliance General Insurance.
“The ESOP scheme is an integral part of our employee rewards programme, aimed at driving and recognising superior performance. It will be our endeavour to consistently expand the scale and reach of our rewards programme through such initiatives,” said Pushkar Singh Kataria, chief people officer, Reliance Capital.
The options vest over a period of five years, with a customary lock-in period.
According to a study, ESOP companies grow 2.3 per cent to 2.4 per cent faster after setting up their ESOP than would have been expected without it. Companies that combine employee ownership with employee workplace participation programmes show even more substantial gains in performance.