State-run National Aluminium Company Limited (Nalco) has become the first public sector undertaking (PSU) in India to offer Employee Stock Option (ESOPs).
The Board of Nalco, which held the Extraordinary General Meeting (EGM) of the company’s shareholders in Bhubaneswar, decided to issue ESOP to the executives of the company as part of payment of dues to them under Performance Related Payment (PRP), a component of revised pay package.
The detailed scheme of ESOPs including price will be worked out subsequently, said a Nalco official. The company had also decided to amend the Article of Association to make provisions for issuing ESOPs.
As per the guidelines of Department of Public Enterprises(DPE), all Central PSUs are required to formulate ESOP and 10 per cent to 25 per cent of the PRP should be paid as ESOP instead of in cash. The scheme is expected to improve performance and involvement level of the employees in the company.
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