hr.economictimes.indiatimes.com | www.ETHRWorld.com
New Delhi: India’s top startups, including Oyo Hotels & Homes, Zomato and Grofers, have expanded their employee stock ownership plan (Esop) pools, handing out more such stock to furloughed employees or those whose pay have been cut during the ongoing economic crisis wrought by the Covid-19 pandemic.
Online grocery company Grofers has almost doubled its Esop pool to over 11%, up from 6% in late 2018, the company said. Hospitality chain Oyo has also increased employee ownership of the SoftBank-backed company to 5.7%, up from 4.9% in March 2019, according to industry tracker Tracxn data.
This comes at a time when India’s top consumer-facing internet startups have been hit hard by the outbreak, forcing a number of them to initiate pay cuts across the board, undertake layoffs and furloughs, as they struggle to rein in costs and conserve cash.
“When Covid-19 pandemic hit, we asked employees to voluntarily take pay cuts and compensated them with additional Esops; 150 employees signed up in April. In total, 600 people came into the fold and we increased the Esops pool, which currently stands at 11.4%,” Albinder Dhindsa, chief executive of Grofers, told ET.
Historically, the importance of Esops and the way they work have been glossed over in the Indian startup ecosystem,…
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