The company is not only planning to offer pay hikes but may also distribute nearly 1 per cent of its stock to about 150 employees.
Snapdeal, that has been wading through some turbulent times in the past few months, amid business losses and consequent layoffs, recently reportedly said it will offer an average pay hike of 12–15 per cent.
Speculations are rife that the e-commerce major is looking to assure employees of their positions, as it looks for a potential buyer. The pay revision will apparently be effective from April 1 and will see salaries of employees at the mid- and junior-levels go up by an average 12–15 per cent.
Interestingly, only a few months back, the founders wrote in an official message to the employees that owing to their past mistakes, they will take a ‘100 per cent pay cut’. Now, the company is offering the senior management a hike of 9–12 per cent. The company may also reportedly offer 20–25 per cent raise to exceptional performers.
If some reports are to be believed, the organisation plans to distribute nearly 1 per cent of its stock to about 150 employees.
The decision to dole out such lucrative incentives comes at a time when Snapdeal’s largest investor, SoftBank, is apparently working towards the sale of the e-commerce platform and a final decision is likely to be made in the next few weeks.
In addition, the company currently has about 3,000 people in its e-commerce operations. It is reported that almost all of these present and ex-employees hold five to six per cent of the company’s stocks in the form of employee stock options (ESOPs).
It is being speculated that Alibaba-backed Paytm is also in the fray as a potential buyer apart from Flipkart. Alibaba is also a shareholder in Snapdeal. Although there has been no official statement from Snapdeal and SoftBank on the speculations of sale so far, co-founders Kunal Bahl and Rohit Bansal, in a recent letter to the employees, had indicated that the company’s investors are “driving the discussions around the way forward”.
If Snapdeal does get sold to Flipkart, the deal will mark the biggest acquisition in the Indian e-commerce space and change the landscape of the sector, which is witnessing intense competition among players.