Infosys approved more than 23 lakh equity incentives for certain eligible employees on Thursday. The shares will be awarded to employees under the 2015 Incentive Compensation Plan and 2019 Expanded Stock Ownership Program, the information technology company informed the stock exchange in an application. The employees of its subsidiaries are also eligible for stock incentives in this round.
“This is to inform that the Nomination and Remuneration Committee has approved the grant of 2,307,300 equity incentive units to certain eligible employees of the Company and its subsidiaries under the 2015 Stock Incentive Compensation Plan (2015 Plan) and Expanded Stock Ownership Program 2019 (2019 Plan) ),” according to the BSE file.
The grant will take effect Feb. 1, 2022. The strike price will be equal to the par value of the shares, the company said.
Approximately 6,516 employees have been granted 7,89,600 shares under the 2015 Stock Incentive Compensation Plan. Likewise, a whopping 15,17,700 shares have been approved for 5,285 employees under the Expanded Stock Ownership Program 2019.
“Three years of equal vesting and will be subject to the Company’s achievement of performance parameters each year as defined in the 2019 plan,” the company further said.
The IT major awarded a total of 37,88,260 equity incentive units in April to specific key executives (KMP) and eligible employees. The four KMP were rewarded with 2,13,400 Limited Supply Units (RSU), while the other six were awarded 106,000 Performance Supply Units (PSU). Key executives included Salil Parekh, the chief executive office, UB Pravin Rao, the chief operating officer, Nilanjan Roy, chief executive office, presidents, Krishnamurthy Shankar, group chief of human resources, Mohit Joshi, Ravi Kumar S, presidents under others.
What is ESOP?
The companies often grant employees a stock ownership plan or ESOP to encourage the employees to acquire stock or ownership in the company. Usually, the employer offers shares of the company to certain employees for negligible costs that remain in the ESOP trust fund. Usually, ESOPs have a vesting period during which employees cannot sell their share. Traditionally, ESOPs were offered to key management positions, but now select employees are eligible for the benefits. It should be noted that ESOPs are taxed as perquisite.
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