L&T, ICICI Bank and Infosys lead on ESOPs. Nifty 12 top deck get richer by Rs 8718 crore
A total of about ₹8,717.65 crore was potentially made over the last two fiscals by the senior-to-top management of 12 large-sector frontliners in the Nifty 50, showed the data put together for ET by ESOP Direct. About 100 million options were issued — mostly to senior management — in FY22 and FY23 by these 12 companies.
It's not clear how much of the Esops were encashed.
Wealth creation was led by L&T and followed by Infosys, ICICI Bank, JSW Steel, Bharti Airtel, ITC, UltraTech Cement, Bajaj Auto, Reliance Industries, UPL, Asian Paints and Dr Reddy's Laboratories, on the basis of the number of options issued.
These companies have created wealth for Esop holders in the range of ₹58.93-4,011 crore, according to the data.
Uptrend in Stock Market
The biggest issuers of FY22 and FY23 were L&T, ICICI Bank, and Infosys.
Board members and compensation experts said that an uptrend in the Indian capital markets has given large companies an opportunity to offer significantly higher salaries to the top management in the form of stock-linked variables as they seek to attract and retain key personnel.
«The top brass of India Inc are in the money with increasing focus on stock-linked variable components such as Esops in senior management pay,» said Jalaj Sinha, head, business development, Esop Direct. «An increasing number of listed traditional sector companies are using Esops to reward and retain top talent.»
It's a matter of recognising the contributions of key people.
«There must be a nexus between effort and reward,» said Sanjiv Mehta, former chairman and CEO of Hindustan Unilever Ltd (HUL).
«Esops or share grants strengthen this nexus. Providing this benefit down the line also helps build the owners mindset in the
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