Global next-generation digital services and consulting company, Infosys, is to allocate 50 million shares (5 crore shares) of Rs 5 face value to employees aligned to shareholder value creation and to broaden and deepen employee ownership of the company.
Infosys’ board of directors approved the Infosys Expanded Stock Ownership Program 2019, that links long term employee incentives with shareholder value creation, subject to shareholder approval.
This unique plan proposes to allocate shares equating to 1.15% of the company’s equity shares to a broad base of employees, which will be based on challenging performance criteria.
This program builds on the legacy of meritocracy that was established by the founders, and strengthens the company’s efforts towards wealth creation for employees, enhanced shareholder returns and delight for customers.
The company has been a pioneer in India, rewarding its employees through stock ownership programs starting in 1994, including the 2015 Incentive Compensation Plan and were also winners of the 2018 European Software Testing Awards’ Best Overall Testing Project – Retail category.
The Expanded Stock Ownership Program 2019 grants allocated to employees over a period of seven years will be bestowed based on challenging performance criteria of a) relative Total Shareholder Return (TSR) against an industry peer group, b) relative TSR against domestic and global indices and c) operating lead performance metrics such as total revenue and digital revenue growth, and operating margins.
Salil Parekh, CEO & MD, Infosys, commented: “Infosys has been a pioneer for many firsts in India, and this program is a key milestone as it sets another benchmark in the industry. Our employees are our biggest asset, and through this program we aim to recognize and reward individuals who are committed to driving value creation for all stakeholders through their continued and consistent performance.
“By making employees owners, they get an opportunity to be beneficiaries in the long term success of the company and realize the results of their work and dedication.”