Cos bet on ESOPs to retain staff

Highlights

Private companies mostly prefer employee stock option programmes as an incentive to retain staff, says a survey.

New Delhi : Private companies mostly prefer employee stock option programmes as an incentive to retain staff, says a survey.

The Information Communication and Entertainment (ICE) sector continues to dominate the ESOP (Employee Stock Option Plan) space, according to leading consultancy KPMG. The conclusions are based on a survey of nearly 460 multi nationals and listed firms in India. Out of the total respondents, 215 companies had either implemented or are planning to implement ESOP.

"Private companies are increasingly considering ESOPs as a compensation mechanism to meet its objectives...Allotment of equity shares under an ESOP continues to be the most popularly adopted incentive plans in India," it said. As per the survey titled 'Employee Stock Options/Equity Incentives - Industry Insights' released today, employee retention continues to be one of the key drivers for companies preferring to provide ESOPs.

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