While the unprecedented pandemic led to several lay offs and job cuts, businesses are finding new ways to retain their employees amongst the chaos. After putting several employees on ‘leave with limited benefits’ and salary cuts, Oyo has announced to its staff that the company has decided to make every employee a co-owner and shareholder by granting them discounted ESOPs.
The company sent a letter stating the development to all its affected and unaffected employees. Rohit Kapoor, CEO of Oyo wrote an email asking the staff to accept the 25% reduction in their fixed salaries effective for the months April-July 2020.
“We have offered all our employees the deeply discounted ESOPs comparable to RSUs…This means all Oyopreneurs have been enabled to buy the stock of the company at a deeply discounted pre-determined price of value and we are already seeking necessary corporate approvals. All 100% of RSUs would be vested at the end of one year from the date of the grant…Our efforts are in line to reward the employees for long term as they sacrificed their salaries to support the company during tough times,” an Oyo spokesperson said in a statement.
According to a letter to sent to one of the junior most employees, they will be allowed to buy the stocks of the company at a deeply discounted pre-determined price. The vesting would continue even after the employees leave the company. The letter also stated that the program requires approval of shareholders and board according to ESOP 2018 and under applicable laws. The letters mention the value of reference share price for the grant as Rs 37,10,000. The date of 100% vesting of the RSUs is mentioned as one year from the date of the grant. The total value of RSUs granted to some of the employees range from over Rs 70,000 to about Rs 1.5 lakh.
A person aware of the matter said, “This is an exercise in compensating all these employees on what they have lost due to Covid. The quantum of the grants and value of RSUs granted depends on how much salary employees lost.”