Infosys announces equity share allotments as rewards for employees
IT companies often provide rewards to employees in the form of bonuses, incentives, and even equity shares as recognition for their significant contributions to the company's growth. Reflecting this trend, Infosys, a leading IT giant, has recently allocated over 5.11 lakh equity shares to eligible employees.
This allotment took place on May 12 and was made under two employee-centric schemes. The objective of these schemes is to enhance employees' ownership in the company and serve as a reward for their exceptional performance.
As per the exchange filing made on May 14, Infosys has announced the allotment of 5,11,862 equity shares on May 12, 2023. This allocation is a result of eligible employees exercising their Restricted Stock Units.
Among the shares allocated to employees, a portion of 1,04,335 equity shares has been allotted under the 2015 Stock Incentive Compensation Plan, while the remaining 4,07,527 equity shares have been allotted under the Infosys Expanded Stock Ownership Program 2019.
The primary aim of Infosys' 2015 Incentive Compensation plan is to attract, retain, and motivate skilled and vital employees. The plan also aims to foster an alignment between individual performance and the company's objectives.
Additionally, the allocation of equity shares serves as a reward for employee performance, allowing them to have ownership in proportion to their contributions. Ultimately, this helps align employee interests with the overall goals of the organisation.
The 2015 Incentive Compensation Plan has been implemented by Infosys as a replacement for its previous RSU Plan.
Furthermore, the Infosys Expanded Stock Ownership Program 2019 aims to enhance shareholder value by expanding employee ownership in the company. This program is designed as a performance-based stock grant initiative to incentivise, retain, and attract key talent.
Subsequently, on May 12, Infosys announced that as a result, the issued and subscribed share capital of the company has now reached ₹20,749,373,460/-, divided into 4,149,874,692 equity shares with a nominal value of ₹5/- each.
At the close of trading on BSE, Infosys' share price stood at ₹1,245.55 per share, representing a decline of 0.84%. With a market cap exceeding ₹5.16 lakh crore, Infosys holds the position of being the third-largest company in India and the second-largest in the IT sector in terms of market value.