Stock options are making a comeback in the corporate world, with middle and senior management positions in startups and traditional companies increasingly offering employee stock options or ESOPs as a lucrative perk. According to data from the Capitaline database, 340.5 million shares were allotted through ESOPs by 461 listed companies in the period of January-May 2024, compared to 253.9 million ESOP allocations by 382 companies in the same period last year.
Leading the way in ESOP grants is Zomato, with 116 million ESOPs granted between February and May. Other notable issuances include Eco Hotels, CMS Info Systems, Infibeam Avenues, and Home First Finance. The renewed interest in ESOPs can be attributed to the surge in the stock market for SMEs and technology companies, as well as the revival of the startup ecosystem.
The rise in IPOs and successful buyback rounds by companies like Wakefit have also contributed to the popularity of ESOPs. Companies are exploring different forms of stock options, such as performance and restricted stocks, to attract and retain top talent. While ESOPs are seen as a valuable incentive, not everyone believes they will maintain their popularity in the long run.
Overall, ESOPs are becoming an increasingly important tool for companies to attract and retain talent in a competitive market. Stay updated with the latest corporate news and updates on Live Mint for more insights into the world of stock options and employee benefits.
