An Indian e-commerce company, Flipkart is set to provide a one-time cash payout for its employees.
According to a report by the Business Standard, The company will be providing a $700 million employee stock option (Esop) buyback and it will be disbursed by July 31.
The Eligible current and former employees will receive approximately Rs 3,615 (or $43.67) for each unit of Esop held on Flipkart. However, the current employees will also receive benefits for their unvested options.
The payout aims to compensate for the loss of PhonePe’s value in the stock option and the separation of PhonePe from Flipkart.
Recently, Wipro Ltd has allotted 80,580 equity shares as ESOP.
As per the regulatory filings announced by the company, Wipro has allotted 80,580 equity shares to employees under the stock option.
The company has allotted 49,652 Restricted Stock units under Company’s Restricted Stock Unit Plan 2007 and 30,928 Restricted Stock units under Company’s ADS Restricted Stock Unit Plan 2004, to its identified employee.
The allotment was approved by the Nomination and Remuneration Committee of the Board and can be exercised over the exercise period as approved by the Committee.
An employee stock ownership plan (ESOP) is an employee benefit plan that gives employees an ownership interest in the company in the form of shares of stock. An ESOP grants company stock to employees, often based on the duration of their employment.