Business Daily from THE HINDU group of publications
Friday, Dec 08, 2006
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Business Daily from THE HINDU group of publications Friday, Dec 08, 2006 ePaper |
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Corporate
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ESOPs Aditya Birla cos to issue employee stock options Our Bureau
Mumbai , Dec. 7 Four Aditya Birla group companies have decided to issue employee stock option schemes, with an eye to both rewarding and retaining their employees. The employee options would be issued for the first time in the history of the group, which is breaking from tradition, said Dr Santrupt Misra, Head of Corporate Human Relations and IT functions with the group. The Boards of Grasim Industries, Aditya Birla Nuvo, Hindalco and UltraTech approved formulation of ESOS schemes on Thursday and constituted ESOS compensation committees for the same. "We first introduced variable pay plans, that was a short-term measure. Now we are moving to long-term plans with employee options," said Dr Misra. There is no particular reason for this timing, he said. It is just that a lot of things, such as the group's long-term plans and strategies are now in place. Options would deepen employees' sense of ownership and accountability, said a spokesperson for the group. Options would, of course, help contain employee attrition. The company has between 5,000 and 6,000 persons in the management cadre. Annual attrition is 4-5 per cent in its textile business, 8-9 per cent in metals, 14-15 per cent in cement and 15-16 per cent in financial services, said Dr Misra. Up to 0.57 per cent of the equity share capital of Aditya Birla Nuvo will be offered to employees, and up to 0.30 per cent each of Hindalco, Grasim Industries and UltraTech.
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