R-Com gives shares to 20,000 employees
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- Published 10.03.08
Mumbai, March 9: Reliance Communications (R-Com) today offered 17.5 million shares to its staff under an employee stock option scheme (Esop).
The initiative is in line with the group’s policy to create value for its external and internal stakeholders. The scheme will cover more than 20,000 employees of R-Com and its subsidiaries, making it the largest stock option by an Indian telecom service provider.
R-Com’s Esop compensation committee approved the grant of 17.5 million options to eligible employees based on specified criteria.
“Our group founder Dhirubhai Ambani believed knowledge resides in people and always built the growth plans of Reliance around people,” said R-Com chairman Anil Dhirubhai Ambani.
“The employee stock option scheme recognises the efforts of our employees and aims to reward them for contributing towards the transformation of Reliance Communications into the most profitable Indian telecom enterprise, and taking it among Asia’s five most valuable companies within two years,” he added.
The company has prepared a three-tier model that will consider various parameters to derive the number of options that should be granted to an employee.
The model will consider the employee’s tenure, position held, contribution and experience. They will be categorised under the Founders’ Club, Pioneers’ Club and Growth Club.
Each option will be exercisable into an equal number of fully paid-up equity shares of R-Com. The options will vest at the end of a year from the date of grant and shall be eligible for exercise for up to nine years.
R-Com shareholders had passed the resolution of grant of securities under the Esop scheme last year. A committee of independent directors was constituted to administer the options.Last week, the company slashed the prices of its Internet data cards by over 13 per cent, following a customs duty cut on wireless data cards in the budget.
Reliance Netconnect PCMIA data card and Reliance Netconnect USB modem data card will now be available for Rs 2,590 and Rs 2,490.