Piramal Group’s new LTI program to attract top talent

livemint.com:

MUMBAI : Piramal Group has rolled out a retention plan in which 280 of their middle and senior management will get long term incentive compared to 70 of the top brass earlier. The new incentives come at a time when there is an increasing demand for experienced senior executives in financial and pharma sectors.

“From around 70 senior leaders, most of whom directly reported to the CXOs/business heads, we have gone down to offering long-term incentives to around 280 mid to senior leaders, which is a four-fold increase in our employee base covered under this program across our three businesses," Vikram Bector, chief human resources officer (CHRO), Piramal Group told Mint. Long-term incentives (LTI) are turning out to be a good retention and talent attraction tool and are stretched over a period of three plus years.

Consultants have pointed out that LTI and stock options are now an attractive part of compensation in established businesses versus startups where a candidate is not wooed by a new firm’s future plans. ‘LTIs are a wealth creation opportunity and helps the company get good talent from other sectors like IT product firms ,where stocks and incentive programs start right from the junior levels," said Jang Bahadur Singh, director of human capital solutions at consulting firm Aon in India.

Singh noted that to increase the stickiness of the employees, corporates are rolling out “backloaded LTIs". This translates into a larger percentage of the LTI coming to the employee towards the last couple of years than initial ones.

“Younger talent coming in from early-stage organizations, look into equity plans and LTIs work well," Singh added. Other business houses are also offering stocks for the senior brass in their new