Digital payments major PhonePe has announced a share buyback under the Employee Stock Option Plan (ESOP) worth Rs 135 crore. The Bengaluru-headquartered fintech firm said that the company’s founders will not participate in the buyback whereas the top leadership can sell up to 10 per cent of their vested stocks. The rest of the employees can sell up to 25 per cent of the vested stock.
The Walmart-owned company had announced its ESOP initiative for 2,200 employees last year aggregating to Rs 1500 crore.
“Last December, we had launched a new PhonePe ESOPs plan and issued ESOPs to 100 per cent of our employees across levels, functions and grades. All these employees will complete the one-year cliff of their stock vesting next month, so it’s a great time to offer some liquidity to everyone. Almost 75 per cent of our current workforce is eligible to participate in the current buyback offer, and for most it’s the first time in their careers that they’ve either owned ESOPs or had a chance to liquidate them,” Manmeet Sandhu, Head of HR, PhonePe, said.
The minimum allotment to each employee under the ESOP buyback started with Rs 3.5 lakh.
Earlier this month, credit cards payment platform, CRED announced a Rs 100 crore ESOP programme this year in which the employees who vested shares as of October 31, 2021 can participate. This was a cumulative ESOP buyback programme after the credit cards payment platform announced its Accelerated Wealth Program to create more liquidity for its employees.
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