NIIT board approves employees stock option
25 Nov 1999
The Board of Directors of NIIT, the global IT Solutions Company, has approved the employees' stock option plan (ESOP) scheme for its global employees at the Board Meeting held here on November 22, 1999. The scheme is pursuant to the SEBI Guidelines and awaits approval by the shareholders at the forthcoming annual general meeting in January 2000.
NIIT plans to cover about one third of the employees by issuing options upto a maximum of 5 per cent of its current equity base of Rs. 38.65 crores, in the first phase.
The options would be granted to eligible employees at a price equivalent to the closing price on the stock exchange where the shares are listed and which has the highest trading volume on the grant date(November 22, 1999). The company had offered 1 per cent of company's equity to over 1100 employees at the time of its initial public offering in 1993.
This ESOP Scheme intends to cover key global employees of
NIIT and its overseas subsidiaries and allow exercise of grants in either physical or cash-less form. The ESOP grant is based on a number of parameters like performance level,
consistent improvements in EVA and potential to contribute to NIIT's growth.This scheme will significantly increase the coverage of NIIT employees who already own part of NIIT and will also enable NIIT to attract and retain exceptional talent to further fuel its growth. Its employee strength stands at 3768.
"We have been moving towards Economic Value Added as our primary performance parameter, over the last two years. The ESOP Scheme will help us convert our managers into owners and align employee interests with the shareholders interest. The ESOP Scheme is a step towards recognition of
efforts of NIIT employees in key roles who are and will continue to make that crucial difference to the organisation," said Rajendran, chief operating officer.
NIIT is known for its innovative HR practices and was conferred the National HRD award last year by the National HRD network, in recognition of its HR practices.