JSW Group rolls out Esop for all staff from shop floor to top brass

JSW Group rolls out Esop for all staff from shop floor to top brass

• By Staff Writer

Sajjan Jindal-led JSW Group will offer around 16 million shares worth about Rs 1,000 crore in a comprehensive employee stock option plan (Esop) to reward all the employees of its steel and energy businesses – a first for a metals and mining group.

The group will acquire shares for the Esop corpus from stock bourses. The offer has a vesting period of four years.

We started operationalizing our mines, and we also have an expansion and growth plan. So, this was the time, I think, to also recognize and reward our people for the effort, the dedication, and the commitment they had put in,” said Dilip Pattanayak, president, human resources, at JSW Group.

JSW Steel is granting 13 million shares, and JSW Energy is granting 3.66 million shares under this wealth creation initiative.

The Esop incentive is over and above employees’ current gross compensation. “The Esop plan does not impact the employee compensation in any way. In fact, it is in addition to the gross CTC (cost to company),” Pattanayak said.

The companies’ lowest grade of employee ranking is called L1, which includes workers from the shop floor, and the highest grade is called L19 for members of their executive committee

Similarly, for JSW Energy, the top management is allotted 1.41 million shares, representing 0.09% of the issued equity capital of the company, and the lower grades are allotted 2.25 million shares or 0.14% of the issued equity capital.