OYO makes all staff shareholder in the company by granting them discounted ESOPs
Covid-19 impact: In a letter to staff, Oyo Hotels and Homes said it’s making every employee a shareholder in the company, providing them with deeply discounted ESOPs (Employee Stock Ownership Plan).
The hospitality major Oyo also noted that the COVID-19 pandemic has had a “deep impact” on its business and the ESOPs was one of the steps to ensure company’s long term success and sustenance.
The letter that was signed off by Oyo’s CHRO Dinesh Ramamurthi, earlier this week, stated that the company is giving deeply discounted ESOPs, comparable to restricted stock units, and in turn helping employees become shareholders in the company, at a deeply discounted price, said an employee on condition not to disclose identity.
Oyo spokesperson confirms the development and said, “We have offered all our employees deeply discounted ESOPs comparable to restricted stock units and henceforth called RSUs. This means all OYOprenuers have been enabled to buy the stock of the company at a deeply discounted pre-determined price of value subject to the necessary corporate approvals,”
“The employees also include the OYOpreneurs on ‘leave with limited benefits’ who will also be granted deeply discounted ESOPs (RSU comparable hereby referred to as RSU) by Oyo,” said the Oyo spokesperson.
On the condition of anonymity above-mentioned employee also said, “These RSUs are granted on June 1, 2020, can be vested only after a year from the date of grant meaning thereby that employees need to be active in the company until June 1, 2021 to exercise this option. The price per RSU is currently decided on Rs.10 per option.
The move comes as Oyo decided to lay off a large number of its employees in the United States last week, but reward them with stock options.