HCL Technologies (HCL), a leading global technology company, announced today its Board of Directors approved a change to its existing long-term incentive (LTI) program to include RSU (restricted stock unit) grants as part of the compensation mix. The company will move from 100 percent cash awards to a mix of 70 percent cash, 30 percent RSUs for the grants it will offer later this calendar year.
Subject to shareholder approval, the plan proposes to allocate 11.1 million shares (equal to less than .50% of the company's equity shares) to almost 3,000 senior leaders. The plans will be offered as tenure based vesting by FY2025, and the company also has proposed an option to substitute this part of the plan with RSUs that vest based on achievement of long-term performance targets.
"We continue to see strong growth momentum in the business, and we are happy to extend long term wealth creation opportunities in the form of RSUs for a greater number of senior leaders," said C Vijayakumar, HCL Technologies CEO and Managing Director.
The structure of the program will ensure there is no equity dilution for existing shareholders of the company. The total plan investment will not be impacted by the move from all cash to cash plus RSUs.
Shares of HCL Technologies Limited was last trading in BSE at Rs. 1250.90 as compared to the previous close of Rs. 1265.70. The total number of shares traded during the day was 473122 in over 27010 trades.
The stock hit an intraday high of Rs. 1293.00 and intraday low of 1244.35. The net turnover during the day was Rs. 595406956.00.