Bengaluru: IT major Infosys on Thursday announced that its board of directors has approved the 'Infosys Expanded Stock Ownership Program 2019' that links long-term employee incentives with shareholder value creation.
Subject to shareholder approval, the "unique" plan proposes to allocate 50 million shares (or 5 crore shares) equating 1.15 percent of the company's equity shares to a broad base of employees, which will vest on challenging performance criteria, the company said in a release.
The program builds on the strong legacy of meritocracy that was established by the founders and strengthens the company's efforts towards wealth creation for employees, enhanced shareholder returns and delight for customers, itsaid.
Infosys claims to be a "pioneer" in India, rewarding its employees through stock ownership programs starting in 1994, including the 2015 Incentive Compensation Plan.
"Our employees are our biggest asset, and through this program we aim to recognize and reward individuals who are committed to driving value creation for all stakeholders through their continued and consistent performance. By making employees owners, they get an opportunity to be beneficiaries in the long-term success of the company and realize the results of their work and dedication," Infosys CEO and MD Salil Parekh said.
The Infosys Expanded Stock Ownership Program 2019, under which grants will vest based on performance, aims to align employee interest with shareholder value creation, incentivize, attract and retain key talent, and reward employee performance with ownership, the company said.
The grants allocated to employees over a period of seven years will vest based on challenging performance criteria of-relative Total Shareholder Return (TSR) against an industry peer group, relative TSR against domestic and global indices, and operating lead performance metrics such as total revenue and digital revenue growth, and operating margins, it added.
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Updated Date: May 17, 2019 08:22:16 IST