Infosys Brings Back ESOPs To Stop People From Quitting

Company brings back employee stock options after a decade

15/07/2016 3:46 PM IST | Updated 16/07/2016 1:08 AM IST
Vivek Prakash / Reuters

Technology services company Infosys is re-introducing employee stock options, which can turn into ownership shares in the company, to stem the tide of people leaving.

About 7,500 junior to middle-level management staff will eligible for these employee stock options, or ESOPs, the company has said. Infosys' headcount stood at 1,97,050 at the end of June 2016.

Infosys' attrition rate, the rate of people leaving, was high at about 21 per cent for the April to June quarter. However, the company is not overly concerned about the high attrition rate, as the June quarter is usually when employees leave for higher studies, said Infosys Chief Operating Officer U B Pravin Rao.

The attrition rate stood at about 17.3 per cent in the March quarter and 19.2 per cent in the same period a year ago.

This year, Infosys has given wage hikes of 6-12 per cent to its employees in India and about two per cent to onsite workers, apart from offering equity as an incentive to top performers.

Rao added that the company continues to focus on train its employees in additional skills and has also revamped its leadership development programmes.

Infosys, which has embarked on a major turnaround strategy under its chief executive Vishal Sikka, , has seen a string of senior departures in recent months.

These exits include high-profile names like former chief financial officer Rajiv Bansal, head of manufacturing and EVP (Executive Vice-President) Sanjay Jalona, Infosys BPO head and EVP Gautam Thakkar, and Infosys EdgeVerve head and EVP Michael Reh.

The most recent exit was that of Samson David, Infosys' head of cloud, infrastructure and security business, and head of artificial intelligence platform Mana.

With PTI inputs

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