NEW DELHI: After the listed companies
it’s now the turn of the small unlisted companies to roll
out stock option programmes for their employees. A host of small
start-ups are doling out stock options to their employees in order
to retain them and also to make them partners in wealth creation.
Companies like Calsoft, Hertz, Dr Lal Path Labs, Eclerx, and Evalueserve
have done it and many more are expected to follow suit.
“The promoters want to share value. Most of
them strongly endorse the concept of team effort,” Tarun Gulati,
VP, ESOPDirect, said explaining the concept. According to experts,
it’s in the maximum interest of promoters to give out stock
options at an early stage, as it helps stop attrition due to poaching
by the bigger companies.
It also helps the smaller companies in drawing talent
from the bigger companies, who otherwise wouldn’t risk quitting
cushy secure jobs. “We have given stock options to a core
set of people who are key to the future of the company. Since we
are looking at an IPO, we want to makes sure that they are with
us right up to the IPO stage,” says Sharmila Natu, COO, Calsoft
Some companies like Hertz, a car rental company,
are rolling out schemes that encompass all levels. “We are
rolling out schemes for managers, executives and even an innovative
scheme for drivers. As a company we believe in sharing and it helps
if we have a highly motivated team with a long term commitment,”
says Rajiv Vij, CEO, Hertz.
Though the drivers don’t have a proper stock
option scheme, they can actually own the car that they drive after
some years of service. One of the main drivers of this phenomenon
have been the private equity players, who have invested in these