Startups attract grads by offering Esops
Thursday, 15 April 2010, 15:16 IST   |    1 Comments
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Startups attract grads by offering Esops
Bangalore: Increasingly, young graduates from premier institutions are moving to start-up companies that offer lower pay but compensate by offering employee stock option plans. But the payout, when it does happen, can far exceed returns from salaried jobs, reports Peerzada Abrar of Economic Times. It is a strategy that a slew of young start-ups are adopting as they fight to attract and retain talent in a competitive market. This year, Bangalore-based online bookstore Flipkart.com is hiring five students from the Indian Institutes of Technology and two from the Indian Institute of Management, Bangalore. "We are also in talks with graduates from Stanford and Harvard University," says Binny Bansal, Flipkart Co-Founder. The IIM graduates who will join the start-up later this month will receive salaries of 14 lakh per annum and 12 lakh per annum respectively in addition to stock options. In just one year of operations, Flipkart has seen revenue grow from 2.5 crore to 25 crore, with its founders aiming for 100 crore by end-2011. On campuses too, students are choosing start-up jobs, attracted by Esops. Many students in the first batch of Indus World School of Business this year were drawn to young companies like Pinstorm, Nettpositive, Coretree, NetAmbit, Liqvid, Makemytrip, which offered a combination of fixed component, variable pay and stock options, according to Arif Hassan, placement coordinator.

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