Zomato ESOP: Food delivery platform Zomato has given 1,19,97,768 stock options to eligible employees under its Foodie Bay Employee Stock Option Scheme 2014 (ESOP 2014) and Zomato Employee Stock Option Scheme 2021 (ESOP 2021). The company has given this information in the BSE exchange filing on 2 October 2024.

According to the filing, the company's nomination and remuneration committee has approved the grant through a circular resolution. Zomato said, "The stock options will be exercisable within (a) 10 years from the date of entry into the options or (b) 12 years from the date of listing. Under ESOP 2014 and ESOP 2021, whichever is later."

 

Each stock option under these schemes represents a conversion of one fully paid-up equity share with a face value of Rs 1. At Zomato's current share price of Rs 275.2, the total amount of stock options granted is Rs 330.17 crore, which rose 2.38 per cent on October 2, reflecting a positive market response to the company's move. Why did this step take place? This initiative of Zomato indicates the company's "commitment" to empowering its employees with long-term money-making opportunities. In fact, ESOP is used as an important tool to align the interests of employees with the growth of the company. A statement from the company said that this is an important step in ensuring that the team remains motivated and invested in the success of the company. With these stock options, Zomato continues to emphasize the value it places on its employees, furthering its belief in collective growth while building a strong foundation for future business growth.