Reliance Capital has announced a massive Employee Stock Option Plan (ESOP) to retain and motivate its core employees, says a news report. According to the report, ESOPs with a notional value of nearly Rs. 300 crores will be given to 500 employees of Reliance Capital and its units. The organization is a part of Anil Ambani-led Reliance Group and works in insurance, mutual funds, broking etc.
The scheme is believed to be part of Reliance Capital’s Rewards Programme which intends towards “retaining and incentivizing key employees for their contribution to the growth and profitability of the company.”
Select employees of Reliance Capital, and its units, namely, Reliance Nippon Life Asset Management, Reliance Commercial Finance, Reliance Home Finance, Reliance Nippon Life Insurance, Reliance General Insurance and Reliance Securities will benefit from the scheme.
The scheme has been approved by the boards of Reliance Capital and respective group companies, says the report. The stock options will be provided over a time period of four years with the customary lock-in period. In a regulatory filing to the stock exchange, Reliance Capital stated, "The ESOPs comprise of 9, 21,000 shares of Reliance Capital plus shares/Phantom shares of operating subsidiaries and associates.” In other words, the notional value of the proposed stock options totals nearly Rs. 300 crores, or 1.6% of the market capitalization of Reliance Capitals.
Reliance Capital Executive Director Anmol Ambani has been quoted saying the report, "We are delighted to offer ESOPs that will enable our key talent to participate in the long term wealth creation opportunities, linked to the growth of the company. The scheme will help us attract, retain and reward talent and also align the employees' sense of ownership with the company.” Post the announcement yesterday, shares of Reliance Capital rose 3 per cent to close at Rs. 767.65 on the BSE.