Jobaaj Stories
IT giant Infosys has announced the allotment of over 5 lakh shares to its employees under two different RSU schemes as the company is looking to improve Employees’ ownership in the company as a performance reward.
“This is to inform that the Company has allotted 5,11,862 equity shares on May 12, 2023, pursuant to the exercise of Restricted Stock Units by eligible employees,” the company said in its exchange filing dated May 14, 2023.
According to the filing, the company allocated 104,335 equity shares under the ‘2015 Stock Incentive Compensation Plan’ and 407,527 equity shares under the ‘Infosys Expanded Stock Ownership Program 2019’ resulting in total Restricted Stock Units (RSU) allocated to 511,862 equity shares.
After allocating said shares to its employees, the company’s total Issued Share Capital increased to Rs 2,074.94 crores comprising 414.99 crore shares with a face value of Rs 5 each.
Most IT companies are facing attrition issues, as providing ESOPs is a good way of retaining employees. Normally, Employee Stock Option Plans (ESOPs) are a way to retain employees and serve as a good performance-based reward that motivates other employees to perform better. These ESOPs normally have a vesting period of 1-3 years after which the employees can sell them.
At the time of reporting, the stock of Infosys was trading around Rs 1,260.55 per share, up 1.2%.
- Aman Agarwal
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