Infy to grant shares to staff for 4-5 yrs: HR head
Infosys, which recently granted stock units to employees after a gap of 13 years, said it will give these units every year for the next 4-5 years so that employees feel a sense of involvement in the growth of the company .
In the first grant, 250 to 500 stocks units have been given to 7,800 mid-level managers, consultants and technical leads that’s about 25% of the employees in those categories. The stocks will vest over four years, with 25% of units vesting each year. A vested stock can be sold by the employee. The stocks are being given at par value (Rs 5). This means the value of the total shares being granted to each employee varies between Rs 2.68 lakh (for those getting 250 shares) and Rs 5.36 lakh (for 500 shares), given the share price of Rs 1,077 on Thursday .What the employee actually gets will depend on the share value on the day she sells it.
“We need employees to be a part of the growth journey of the company . It’s not a one-off grant. We want to do it every year and at this point, we are looking at giving units to employees over the next 4-5 years.Most equity plans work on a continuous basis and that’s when it kicks in huge benefits for the employees,“ Infosys group HR head Krishnamurthy Shankar told TOI.
Shankar said the value of the shares granted is equivalent to 10-15% of the employee’s salary . He said if a person gets these grants every year for the next four years, the value of the total shares she holds could be equivalent to 60% of her salary . Senior level executives will be among those given stock grants in the next round.