Esop culture making India Inc top execs richer
wealth surge more than ₹10,300 crore (as on August 30), as their employee stock options (Esop) allocations in the past two years fared exceedingly well on the bourses. Data of Esop issuances-put together by Esop Direct-by 12 sector frontliners in the Nifty 50 showed that about 90 million options were issued over FY23 and FY24. Companies using this talent-rewarding tool include L&T, Infosys, ICICI Bank, JSW Steel, Bharti Airtel, ITC, UltraTech Cement, Bajaj Auto, Reliance Industries, UPL, Asian Paints, and Dr Reddy's Laboratories.
Officials and board members said these long-term incentives such as Esops were increasingly used by large Indian companies as a major tool to reward and retain top talent in the years where poaching was becoming rampant.
«The data shows an increasing trend among listed Indian traditional sector companies to use Esops to reward and retain top talent by aligning their wealth creation with that of the company's growth,» said Jalaj Sinha, head, business development, Esop Direct (a Qapita Group Company).
«Top CEOs, CXOs, and other senior executives Esop wealth value has increased in recent years due to the growth of the capital markets, increased performance and growing use of RSUs and discounted options,» said Sinha.
It's not clear how much of the Esops were encashed.
The data estimates the wealth creation of Esop grants in FY23 and FY24 in the aforementioned companies is in the range of ₹26 crore-₹3,254 crore.
Milind Sarwate, independent director & chairman of the audit committee at
