Aditya Birla Capital rewards its employees with stock options
Aditya Birla Capital Limited (ABCL) is one of the largest financial services players in India, offering a wide range of products and services across life insurance, asset management, health insurance, housing finance, private equity, general insurance broking, wealth management, broking, online personal finance management and more.
The company has been performing well in the market, with its share price rising by 1.23 percent on Friday to close at ₹193.95. The company has also announced the allotment of 4,80,809 equity shares to its employees as stock option under ABCL Scheme 2017. This is a gesture of appreciation and recognition for the hard work and dedication of the employees who have contributed to the growth and success of the company.
The equity shares have a face value of ₹10 each and will rank pari passu with the existing equity shares of the company in all aspects. With this allotment, the paid-up equity share capital of the company will increase from ₹25,96,17,22,920 to ₹25,96,65,31,010.
This is not the first time that ABCL has rewarded its employees with stock options. In June 2023, the company had allotted 3,200 equity shares to its employees as ESOPs. The company believes that stock options are an effective way to align the interests of the employees with those of the shareholders and to create a culture of ownership and accountability.
Stock options are also a form of incentive compensation that can motivate employees to perform better and stay loyal to the company. According to a study by Harvard Business Review, stock options can increase employee productivity by 20 percent and reduce turnover by 50 percent.
If you are an employee of ABCL or a prospective investor in the company, you might be interested in knowing more about the ABCL Scheme 2017. This is a scheme that was approved by the shareholders of the company in September 2017 and allows the company to grant stock options or restricted stock units (RSUs) to eligible employees up to 5 percent of the issued capital of the company.
The scheme has various terms and conditions that govern the eligibility criteria, vesting period, exercise price, exercise period and other aspects of the stock options or RSUs. The scheme also has a provision for cashless exercise of stock options or RSUs, which means that the employees can use their vested options or units to pay for the exercise price and taxes without having to shell out any cash.
The ABCL Scheme 2017 is administered by the Stakeholders Relationship Committee of the Board of Directors of the company. The committee has the authority to decide on various matters related to the scheme such as grant date, grant price, vesting schedule, performance criteria and other terms and conditions.
The ABCL Scheme 2017 is one of the ways that ABCL demonstrates its commitment to its employees and its vision to be a leader in financial services in India. By granting stock options or RSUs to its employees, ABCL not only rewards them for their performance but also empowers them to share in the future growth and value creation of the company.
If you enjoyed this newsletter and want to learn more about ABCL and its financial services offerings, you can visit their website or follow them on social media. You can also subscribe to this newsletter for more updates and insights on ABCL and other topics related to finance and business.
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