Financial services major Reliance Capital on Thursday announced a major ESOP scheme under which select employees across all major operating businesses would be granted stock options with a notional value of Rs. 150 crore.
Reliance Capital is part of Anil Ambani-led business conglomerate Reliance Group and is present in insurance, mutual fund, broking and non-banking finance businesses among others.
The ESOPs would be given to a total of 250 employees of Reliance Capital and its major business units – including Reliance Capital Asset Management, Reliance Commercial Finance, Reliance Life Insurance, Reliance Securities and Reliance General Insurance.
All top management, including Sam Ghosh, Madhusudan Kela and business CEOs are also covered under this grant of ESOP.
Reliance Capital’s Vice Chairman Amitabh Jhunjhunwala said the ESOPs, linked to the growth of the company, will provide long-term wealth creation opportunities to key talent.
“This will not only help us reward and retain talent, but also align the employees’ sense of ownership with the business,” he added.
The company said the eligible employees will get options on Reliance Capital’s listed stock and/or phantom shares of its businesses.
The ESOPs comprise of 6,46,080 shares of Reliance Capital and the balance as Phantom Shares of operating subsidiaries.
The notional value of the proposed stock options, at Rs. 150 crore, represents 1.6 per cent of Reliance Capital’s market capitalisation.
The Employee Stock Option (ESOP) Scheme 2015, which is subject to requisite approvals, has been approved by the boards of Reliance Capital’ and respective group companies.
The company said the scheme is part of Reliance Capital’s Rewards Programme aimed at retaining and incentivizing key employees for their contribution to the growth and profitability of the company.
“The ESOP scheme is an integral part of our Employee Rewards program, aimed towards driving and recognising superior performance. It will be our endeavour to consistently expand the scale and reach of our Rewards program through various such initiatives,” Reliance Capital’s Chief People Officer Pushkar Singh Kataria said.
The options vest over a period of five years, with customary lock-in period.