State-owned companies may soon offer stock option

GN Bureau | September 9, 2015



Employee Stock Options (ESOPs) may come into play in public sector enterprises. Instead of cash as part of variable pay, the public sector employees will get ESOPs.

The department of disinvestment has suggested to the department of public enterprises that the performance related pay (PRP) to executives be in the form of ESOP so that employees can become part owners of the companies and have stake in their growth. PRP is a variable component of the remuneration paid to the executives of public sector units.

Currently, the concept of giving ESOP as part of PRP is optional. A portion of the PRP can be paid in the form of ESOPs if employees opt for it. “We want more retail holding in PSUs. By giving ESOPs as variable pay package both the employee and the company benefit,” source said.

In June last year, market regulator Sebi had made it mandatory for PSUs to ensure at least 25 per cent public shareholding within three years. If the ESOP plan goes through, then meeting the 25 per cent public holding limit would get easier for the DoD as the present volatility in markets has somewhat dampened the disinvestment programme of the government.

Comments

 

Other News

An eye on AI

Google Assistant, Rekognition and Tay. All these, often seen in news, have a common thread – they are powered by Artificial Intelligence (AI). Only difference is that while some have been in news for right reasons, some others have made it to the headlines for all the wrong reasons. For instance, Goo

Data-powered economy

1.33 billion. Let that large number sink in. That number is nearly 18 percent of the total global population, and almost the number of people estimated to currently reside in the republic of India, one of the world’s largest and fastest growing economies. These 1.33 billion people are spread across a

Dams or time bombs?

Kerala is limping back to normal after the devastating floods that wreaked havoc in the state prompting red alert in all 14 of its districts. While the rescue activities and immediate relief are now a thing of the past, the state is struggling to turn a new page and the focus is on reconstruction an

The imprint of the Gurjara Pratiharas

On August 16, when the country lost its beloved former prime minister Atal Bihari Vajpayee, a nondescript village, 70 km from Agra, came into the limelight. Bateshwar, the ancestral village of Vajpayee, is situated along the notorious Chambal ravines on the banks of the Yamuna. Vajpayee&rsq

Imagining the worst

Love Sonia is not a film you would want to watch if you knew its subject: sex trafficking. Without even a scene experienced, the subject induces visceral revulsion. However optimistic the screenplay, it can only deal in ugly dregs and bring up retching bile. Even so, Love Sonia, gritty an

India’s balancing act with China

On the first day of his August 19-20 visit to India, when Japanese defence minister Itsunori Onodera held talks with his Indian counterpart Nirmala Sitharaman, several defence and strategic-related issues had cropped up in their annual talks. But a big smile flashed on Sithraman’s face when Onodera,

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter