Indian IT giant Infosys rewards top employees with $78 million worth of equity shares

At a time when IT employees were being laid off across the world over fears of recession, the Indian tech giant Infosys seems to be making efforts to ensure the well-being of its staff.

In a stock exchange filing on May 14, Infosys disclosed that it disbursed more than 500,000 equity shares worth around 650 million Indian rupees ($78 million) to eligible employees as a reward for their key contributions to the company’s growth.

The shares were allotted on May 12 under two employee-related schemes that seek to expand employees' ownership in the company.

Of the total shares allotted to the employees, 104,335 equity shares were allotted under the 2015 Stock Incentive Compensation Plan; and 407,527 equity shares under the Infosys Expanded Stock Ownership Programme 2019.

"This is to inform that the company has allotted 511,862 equity shares on May 12, 2023, pursuant to the exercise of Restricted Stock Units by eligible employees," Infosys said in its Bombay Stock Exchange (BSE) filing.

The practice of allotting company shares is often undertaken to motivate and retain talented and critical employees.

In the case of Infosys, the stock options are provided under its 2019 Incentive Compensation plan to encourage employees to align individual performance with the company’s objectives.

Under this plan, all employees of Infosys are eligible to participate. The appraisal process for determining the eligibility of employees for the grant of restricted stock units under this plan is determined by an administrator and is based on their level in the organisation, their performance and future potential, and any other criteria as will be determined by the administrator from time to time, Infosys said.

And in the event of termination of employment, or resignation of the participant, under the restricted stock units granted under the relevant award agreement which are not yet vested in the participant shall automatically terminate if the vesting criteria have not been satisfied, as of the date of termination or resignation, as the case may be, Infosys said.

Infosys in its filing further said that the issued and subscribed share capital of the company stands increased to Rs 20,749,373,460- divided into 4,149,874,692 equity shares of Rs 5 each.

On Monday, Infosys shares were trading 1 per cent higher at Rs 1,257 on BSE.

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