Indian eCommerce majors such as Snapdeal, Jabong, Snapdeal, Urban Ladder, Ola and Myntra among others have started providing 'accelerators vesting' for employees stock options (ESOPs).
With an intention to increase talent crunch, Indian eCommerce majors such as Snapdeal, Jabong, Snapdeal, Urban Ladder, Ola and Myntra among others have started providing ‘accelerators vesting’ for employees stock options (ESOPs).
This initiative will allow employees to vest in case the company has planned to sell-off or IPO. If ‘accelerators vesting’ is not mentioned, then employees cannot sell their stocks in case the company sells out.
"We are offering an increasing number of accelerators for ESOPs for senior level hires in the past six months," says the HR head of a large online retailer. "Several senior level candidates are also now demanding it in their contract," he adds.
Accelerated vesting is a tool to an employee when he/she decides to quit an organisation and don’t want to be stuck in the old firm.
"All employees at Paytm with ESOPs are eligible for accelerated vesting in the event of a liquidity event like an IPO. With the rapid valuation hikes that companies like ours have seen, the employees get an opportunity to increase their paper money exponentially/ disproportionately," Amit Sinha, People Head, Paytm.
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