Last Updated:
The initiative spans three major subsidiaries of the group — M&M (encompassing the auto and farm sectors), Mahindra Electric Automobile Ltd (MEAL), and Mahindra Last Mile Mobility.
M&M’s market capitalisation has multiplied 12 times since April 2020.
In a major move, Mahindra & Mahindra (M&M) has announced a one-time Employee Stock Ownership Plan (ESOP) covering about 23,000 employees, including shop floor workers, to recognise their role in the company’s remarkable growth trajectory.
“This is something that I am very happy about and very proud about our company’s culture because these ESOPs are for every single person in the company. This is effectively a token of gratitude, because their efforts have helped us do extremely well,” said Group CEO & MD Anish Shah in an interview with news agency PTI.
The initiative spans three major subsidiaries of the group — Mahindra & Mahindra (encompassing the auto and farm sectors), Mahindra Electric Automobile Ltd (MEAL), and Mahindra Last Mile Mobility.
Notably, this marks what is believed to be the first instance of a large Indian conglomerate offering stock ownership to shop floor workers. The shares will be awarded in the form of restricted stock units (RSUs).
According to Shah, the scheme will benefit all employees on permanent payrolls who have completed at least 12 months of service with the group. The total outlay for the ESOP programme is expected to be in the range of 400 to 500 crore, although the final amount will depend on a range of variables.
“It (400 crore to 500 crore) is a very significant amount, but as I look at it, overall, the value creation they (workers) have led is a lot more,” he said, adding that the plan is designed to reward long-term contributions and align employee efforts with the company’s broader wealth creation goals.
Shah highlighted that M&M’s market capitalisation has multiplied 12 times since April 2020 — a testament, he said, to the efforts of employees across all levels.
The announcement comes alongside the company’s strong financial performance in the June quarter. M&M reported a 24 per cent year-on-year rise in consolidated net profit, reaching 4,083 crore, compared to 3,283 crore in the same period last year. Revenue from operations also increased significantly to 45,529 crore from 37,218 crore a year ago, reflecting robust performance across business verticals.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
view comments
Read More
