“Expanding Employee Ownership: Infosys’ Recent Allotment of Equity Shares”. “Expanding Employee Ownership: Infosys’ Recent Allotment of Equity Shares”
IT giant Infosys has recently made a move to expand its employees’ ownership in the company by allotting more than 5.11 lakh equity shares to eligible employees under two employee-related schemes Infosys is one of India’s largest IT companies, and its recent decision to allot equity shares to eligible employees under two schemes highlights the company’s commitment to employee engagement and growth. The move to expand employee ownership in the company is expected to boost employee motivation, incentivize employees to contribute more to the company’s growth, and improve employee retention rates.
The 2015 Incentive Compensation Plan, which replaced Infosys’ earlier RSU Plan, aims to attract, retain, and motivate talented and critical employees. The plan encourages employees to align their performance with the company’s objectives and offers them the opportunity to share in the company’s growth. The Infosys Expanded Stock Ownership Program 2019, on the other hand, aims to increase shareholder value by expanding employee ownership of the company. Through this performance-based stock grant program, the company incentivizes, retains, and attracts key talent.
Infosys has always been known for rewarding its employees, not just with bonuses and incentives but also in the form of equity shares for their key contributions to the company’s growth. This recent allotment of equity shares is another testament to the company’s commitment to its employees and recognition of their performance. The company’s founders envisioned a desirable workplace for their employees. The sprawling Infosys campus spans 29 acres and features landscaped gardens, food courts, and piped music from speakers in the outdoor amphitheaters, which is a testament to that vision.
The vesting period of a restricted stock unit, under Infosys Expanded Stock Ownership Program 2019, awarded shall not be less than a period of 1 year, and which may extend to a maximum of 3 years from the date of the award, as decided by the administrator from time to time, Infosys said.
And in the event of termination of employment, or resignation of the participant, under the restricted stock units granted under the relevant award agreement which are not yet vested in the participant shall automatically terminate if the vesting criteria have not been satisfied, as of the date of termination or resignation, as the case may be, Infosys said.
This recent allotment of equity shares is another testament to the company’s commitment to its employees and recognition of their performance.
Lastly, Infosys said that consequently, on May 12, the issued and subscribed share capital of the Company stands increased to ₹ 20,749,373,460/- divided into 4,149,874,692 equity shares of ₹5/-.
On BSE, Infosys’ share price closed at ₹1,245.55 apiece down by 0.84%. Infosys is the third-largest company in Indian and second largest in the IT segment in terms of market value.
Of the total shares allotted to the employees, 1,04,335 equity shares were allotted under the 2015 Stock Incentive Compensation Plan; and 4,07,527 equity shares under the Infosys Expanded Stock Ownership Program 2019.
In its exchange filing on May 14, Infosys said, “This is to inform that the Company has allotted 5,11,862 equity shares on May 12, 2023, according to the exercise of Restricted Stock Units by eligible employees
Currently, the company has a market cap of over ₹5.16 lakh crore.
The recent allotment of equity shares to eligible employees is another demonstration of Infosys’ commitment to its employees. The move is a reward for employees’ contributions to the company’s growth and success, and it is expected to further motivate employees to work towards the company’s objectives.
Infosys’ market value has been consistently growing, and the company is now the second-largest in the IT segment in terms of market value, with a current market cap of over ₹5.16 lakh crore. As of May 12, the company’s issued and subscribed share capital stood at ₹ 20,749,373,460/- divided into 4,149,874,692 equity shares of ₹5/- each.
This recent move by Infosys is not only beneficial for the employees but also for the company. As employee motivation and engagement increase, so does their productivity, which, in turn, positively impacts the company’s overall growth. This move also highlights the company’s commitment to attracting and retaining top talent.
The aim of Infosys’ 2015 Incentive Compensation plan is to attract retain and motivate talented and critical employees. On the other hand, encouraging employees to align individual performance with the company’s objectives. Not just, it comes as a reward for employee performance with ownership in proportion to their contribution. Also, align employee interests with those of the organization.
It is worth noting that employee ownership in a company can have numerous benefits. Research has shown that employee ownership can lead to increased employee motivation, productivity, and job satisfaction, which, in turn, leads to higher customer satisfaction and profitability. Companies that offer employee stock ownership plans have also been found to have lower employee turnover rates.
In conclusion, Infosys’ recent move to allot equity shares to eligible employees under two schemes is a positive step towards expanding employee ownership in the company and recognizing employees’ contributions to its growth. The move highlights the company’s commitment to attracting and retaining top talent and motivating employees to work towards the company’s objectives. This move also shows the company’s commitment to attracting through its performance-based stock grant programs. This move is expected to lead to higher employee motivation, productivity, and job satisfaction, ultimately benefiting both the employees and the company. Employee ownership is a proven strategy for improving company performance, and Infosys’ recent move is an excellent example of how this can be implemented in practice.