Bangalore: redBus.in, an online bus ticketing portal which was taken over for 800 crore by Naspers  in June this year, is presently witnessing various senior management level exits. According to sources, it is found that many more are planning to leave the job.

Sources also mentioned that the reason behind this exodus was largely due to issues relating to how the employee stock options (ESOPs) were not executed as per the employees. The ESOPs are benefitted by the founding team and some select employees only while the rest of employees were left out, reports medianama.com.

Actually, redBus selected the company securities decision, through which the acquirer offers preferred common stock in its company based on the ESOP structure of the acquired, instead of choosing accelerated vesting choice that converts stock options to shares and employees. Recently at a conference, Sama had interestingly spoke about the trickiness involved in  judging whether startups should provide stocks to every employee or restrict the stock options to only some selected employees and how much stock should they provide to employees, as they have a limited amount of available stocks. He said, “We formulated a program to restrict the stock options to only senior management and early employees. However, if we had known we are going to exit after seven years at this price, then we would’ve done this differently and would’ve provided stocks to more number of people, but that’s always uncertain. Another problem is that the company’s life is uncertain. It could be 20 years or 40 years or 7 years, during which the company management could change several times and you will have to accommodate all of them,” reports medianama.com.

So far, redBus founder and CEO Phanindra Sama have not commented to the publication yet.

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