As part of its first initiative of its kind in the industry, Mahindra & Mahindra is launching a lump sum employees’ share ownership scheme (ESOP) for around 23,000 employees. These include employees working in the factory. The scheme will be started to award them for the contribution of employees to the company’s growth journey. The meaning of ESOP, when an employee receives ownership interest in the company mainly as stock shares, is known as the employee stock ownership plan or ESOP share. ESOP shares encourage employees to fulfill their best capabilities.
This information was given by Chief Executive Officer (CEO) and Managing Director (MD) of Mahindra Group. Shah said that this initiative includes Mahindra’s three major subsidiaries- Mahindra & Mahindra (Vehicle and Agriculture Region), Mahindra Electric Automobile and Mahindra Last Mile Mobility. This is perhaps the first example of its kind, when a large Indian group has provided ESOP facility to all employees. These shares will be given as banned stock units (RSUs).
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He said, I am very happy and I am very proud of the culture of our company because they are for each employee of ESOP company. This really symbolizes gratitude, as their efforts have helped us to perform very well.
He said that the market capitalization of this diverse group has increased 12 times from April 2020, and the group felt that it was necessary to accept the contribution of the employees. The group will be eligible to get at least 12 -month -old permanent payroll servants.
What is ESOP: The meaning of ESOP, when an employee receives ownership interest in the company mainly as stock shares, is known as the employee stock ownership plan or ESOP share. ESOP shares encourage employees to fulfill their best capabilities. It also helps employees feel valuable for their work and get better rewards.
Edited by: Chetan Gour
