Reliance Communications Ltd on March 09, 2008 has announced a first of its kind and unique Employee Stock Options Scheme in order to share the growth in value and reward its employees for having participated in the unprecedented success of the Company. The initiative in line with the Groups policy to create value for stakeholders — external and internal, the Employee Stock option scheme would cover over 20,000 employees of Reliance Communications, and its subsidiaries, making it the largest ESOP rollout by any Indian Telecom Service Provider. The ESOS Compensation Committee of the Board of Directors of the Company approved grant of 175,00,000 (17.5 million) Options to the eligible employees based on specified criteria.
"Our Group Founder, and Visionary, Late Shri. Dhirubhai Ambani always believed that knowledge resides in people, and accordingly always build the growth plans of Reliance around people", said Mr. Anil Dhirubhai Ambani, Chairman - Reliance Communications. "The Employee Stock Option Scheme truly recognizes the efforts of our employees and aims to reward them for contributing towards the transformation of Reliance Communications as the most profitable Indian Telecom Enterprise, and among Asia's Top 5 Most Valuable Companies within a short span of two years", he added.
The Company has undergone extensive research based on intricate scientific models to formulate an innovative 3-Tier Model that would consider multiple parameters to derive at number of options to be granted to every individual employee. The Three-Tier Model, incorporating global best practices, would consider multiple parameters including number of years in the Company, Role, Contribution, Experience amongst others while categorization under:
- Founder's Club
- Pioneer's Club
- Growth Club
Each option would be exercisable into equal number of fully paid-up equity shares of Reliance Communications. The Options will vest at the end of one year from the date of grant and shall be eligible for exercise up to a period of nine years from the date of vesting as prescribed in the Exercise Schedule of the respective Plan(s). The Shareholders of Reliance Communications had passed the resolution of grant of securities under the ESOS scheme last year. An ESOS Committee of Independent Directors of the Board was constituted to administer the ESOS.