Employee stock ownership plans (ESOPs), which were used to wrap upper leadership to corporate goals and render their pay cost-effective, are now being distributed to employees across the board by some esop startups — particularly those in industries that saw their business and revenue reach new highs despite the pandemic.
A number of ESOP Startup, including PhonePe, Licious, ShareChat, and Wakefit, have recently rewarded their employees with ESOPs across the board, including back-office, administrative, production, and on-the-ground sales staff, as a gesture of sharing their success in order to keep people motivated and retain talent.
Experts say that liquidity events or cash-out chances that have created value for ESOPs in real cash terms in recent years are motivating an increasing number of esop startups to embrace it as a strategy to recruit and retain talent.
PhonePe, an online payment esop startup, has announced a $200 million (Rs 1,460 crore) stock option plan for all of its 2,200 workers, allowing everyone in the organisation to profit from the company's success in a year when digital payments have risen tremendously.
"Every separate PhonePe employee, even if they are software engineers, product designers, customer engagement agents, or on-the-ground sales agents, has made a significant contribution to creating value for the company, so it is only fair that everyone benefits from it," said Manmeet Sandhu, PhonePe's chief people officer.
"Our compensation structure conforms to this strategy by eliminating variable pay based on individual achievement for the majority of tasks." Instead, we employ ESOPs to incentivize everyone to contribute in long-term organisational growth. "We empower every employee in the organisation to participate in the wealth development potential they helped build by having ESOPs at a minimum of $5,000 for all levels," she added.
Licious, a Bengaluru-based meat and seafood firm, unveiled its first ESOP plan in January, which would benefit more than 800 employees across roles, including processing-centre staff, delivery boys, and corporate employees.
"Our meat technologists, meat processors, and delivery warriors are the lifeblood of this business and deserve to profit from its expansion." The ESOP award to our blue-collar workforce is a proactive and good move in the right path," stated co-founder Abhay Hanjura.