Infosys, the country's second largest software exporter, has announced stock incentive option to nearly 7,000 mid-level employees in the form of restricted stock units (RSU). The announcement propelled the stock over 2 per cent.
"This is to inform that 2,298,020 stock incentives in the form of RSUs were granted to 6,949 mid-level eligible employees of the company/subsidiary companies under the 2015 Stock Incentive Compensation Plan," Infosys said in a filing to the stock exchanges on Thursday.
The IT major said that the date of grant for these stock incentives is November 1, 2019, in line with the company's compensation calendar timelines. These RSUs will generally vest in 4 equal instalments, it added.
Boosted by the development, Infosys share price gained as much as 2.69 per cent to touch an intra-day high of Rs 652.50 apiece on the BSE, after opening higher at Rs 644.30 against previous close level of Rs 635.40.
On the National Stock Exchange (NSE), stocks of Infosys were trading 1.36 per cent higher at Rs 644 after opening higher at Rs 647. In the opening deal, the stock hit a high of Rs 652.50.
In April, the company's board had approved performance-based stock ownership programme for employees.
In connection with whistleblower's allegations of "unethical practices", the company has informed the stock exchanges that it has directed law firm Shardul Amarchand Mangaldas and consultancy Ernst & Young to conduct an independent probe in the matter.
Infosys said both the complaints made by the group called 'Ethical Employees' had been placed before the Infosys audit committee and its non-executive members. The company placed "both complaints before the audit committee on October 10, 2019, and before the non-executive members of the Board on October 11, 2019."
In a complaint letter to the board of Infosys and the US Securities and Exchange Commission (SEC) last month, an anonymous group of employees had accused CEO Salil Parekh and CFO Nilanjan Roy of using "unethical practices" to boost revenue and profit for the company.
Edited by Chitranjan Kumar