Indian firms compete to allot ESOPS

By siliconindia   |   Monday, 16 April 2007, 19:30 IST
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It has been over a month since the budget and 48 companies have given 281 of their employees – including the chairman, managing director, director, whole-time director, chief executive officer, manager and whole-time director 66.9 million shares valued at $787.5 million under Employee Stock Option Plans (ESOPs). According to the Business Standard this has created 73 dollar millionaires in less than two months. The FM had announced during the budget that the fringe benefit tax would be extended to the ESOPS too starting this financial year. To stem attrition, ESOPS have become an important tool at the hands of employers to retain intellectual manpower and the new law has taken the sheen off ESOPS. So companies are rushing to offer ESOPs before the government notifies the tax laws. Thus seven companies have managed to create 73 dollar millionaires. The Business Standard reports that of the new 73 dollar millionaire employees, 43 are from the ICICI Bank, 25 are from i-flex solutions and one each is from Larsen and Toubro, NIIT, Dabur Pharmaceuticals, Geometric Software and Aztecsoft. According to the news item heading the individual dollar millionaire list is Vineet Nayyar, managing director of Tech Mahindra. Nayyar holding 1.54 million shares in Tech Mahindra worth $49.1 million. He is followed by Larsen & Toubro Chairman and Managing Director A M Naik, who holds 1.04 million shares valued at $37.53 million. The third on the list is Mohandas Pai of Infosys with shares worth $ 30.51 million. Among companies, India's largest private sector bank, ICICI Bank, has 88 dollar millionaires employees. (For calculation $1=Rs 44)

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