Infosys on Thursday approved over 23 lakh stock incentives to certain eligible employees. The stocks will be granted to employees under its 2015 Incentive Compensation Plan and Expanded Stock Ownership Program 2019, the information technology company informed the stock exchange in a filing. The employees of its subsidiaries will also be 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 stock 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 filing.
The grant will be effective from February 1,2022. The exercise price will be equal to the par value of shares, the company said.
Around 6,516 employees has been granted 7,89,600 shares under the 2015 Stock Incentive Compensation Plan. Similarly, as many as 15,17,700 shares have been approved to 5,285 employees under the Expanded Stock Ownership Program 2019.
“Three-year equal vesting and will be subject to Company’s achievement of performance parameters each year as defined in the 2019 Plan,” the company further said.
The IT major in last April granted a total of 37,88,260 stock incentive units to specific key managerial personnel (KMP) and eligible employees. The four KMP received an incentive of 2,13,400 restricted stock units (RSU) while the other six 1,06,000 performance stock units (PSU). The key managerial personnel included Salil Parekh, the chief executive office, UB Pravin Rao, the chief operating officer, Nilanjan Roy, chief executive office, presidents, Krishnamurthy Shankar, group human resources head, Mohit Joshi, Ravi Kumar S, presidents among others.
What is ESOP?
The companies often grant employees stock ownership plan or ESOP to encourage the employees to acquire stocks or ownership in the company. Usually employer offers stocks of the company to certain employees for a negligible costs that remain in the ESOP trust fund. Usually ESOPs come with a vesting period during which employees cannot sell their share. Traditionally ESOPs have been offered to key managerial positions but now certain employees are also eligible to get the benefits. It must be noted ESOPs are taxed as perquisite.
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