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In a significant break with tradition, five listed companies of the Tata Group, including Titan and Tata Power, recently introduced equity-based compensation for senior executives, a move designed to attract, incentivise and retain senior talent in a hyper-competitive market. Top company executives confirmed that with the 155-year-old conglomerate focusing on building a performance-linked culture to boost productivity and grow faster, group companies have begun including share-based compensation as part of pay packages to match competition and motivate senior-level employees.Over the last two years, Tata Consumer Products, Tata Power, Tata Communications, Titan and Tata Elxsi began offering performance-based stock units, restricted stock units and employee stock options (Esops) – all forms of equity-based compensation – for the first time, according to company filings viewed by ET.
The latest is Tata Power, which sought shareholder approval to issue Esops this month. A top Tata group executive said instruments like Esops help companies to ensure their compensation packages are close to industry trends and strengthen their ability to attract and retain top talent. “As the management focuses on creating shareholder value, employees also get motivated by getting to share the value…
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