Executives decide to sell shares as market on its high
New Delhi: As the market valuations rose towards their all-time highs, a lot of professionals have decided to encash part of their stock options. With the stock market on the rise, employee stock options plans (Esops) that were looking not so attractive a few months ago have become quite lucrative now, reports Vivek Sinha and Mahima Puri of the Economic Times.
Chairman and Managing Director of Larsen & Toubro, Anil M Naik sold shares worth around 
38 crore since June, while Sanjay Kalra, the former CEO of IT services firm Tech Mahindra sold company shares worth around 30 crore in the same month. There are other mid-senior level executives too, who pocketed crores of rupees in the past 3-4 months by selling shares converted from Esops.
Many others also saw an opportunity to encash Esops granted by their respective companies as share prices rose. For instance, Joseph John, a board member of Oracle Financial Services Software, who also heads the banking products division and is responsible for the company's flagship product, Flexcube, sold shares worth 4 crore last month.
In some cases, professionals pocketed a large sum after their companies got listed, providing them options to sell shares that were granted as stock compensation.
According to an SKS Microfinance spokesperson, being a social sector company, salaries at the microfinance firm were quite low initially. The company had given stock options to many of its employees in 2007 to reward field staff who had completed five years and area managers who had completed one year of service. SKS Microfinance now hopes a successful listing and high price of its scrip will further help in attracting and retaining talent.
38 crore since June, while Sanjay Kalra, the former CEO of IT services firm Tech Mahindra sold company shares worth around 30 crore in the same month. There are other mid-senior level executives too, who pocketed crores of rupees in the past 3-4 months by selling shares converted from Esops.
Many others also saw an opportunity to encash Esops granted by their respective companies as share prices rose. For instance, Joseph John, a board member of Oracle Financial Services Software, who also heads the banking products division and is responsible for the company's flagship product, Flexcube, sold shares worth 4 crore last month.
In some cases, professionals pocketed a large sum after their companies got listed, providing them options to sell shares that were granted as stock compensation.
According to an SKS Microfinance spokesperson, being a social sector company, salaries at the microfinance firm were quite low initially. The company had given stock options to many of its employees in 2007 to reward field staff who had completed five years and area managers who had completed one year of service. SKS Microfinance now hopes a successful listing and high price of its scrip will further help in attracting and retaining talent.