Bengaluru: Flipkart It is buying back employee stock options (ESOPs) worth Rs 600 crore ($80.5 million), a move that would create new dollar millionaires. About 6,000 employees of Flipkart have the option to terminate up to 10% of their vested ESOPs.
ESOP The buyback is part of the latest $3.6 billion funding round led by a group of investors, including GICCanada Pension Plan Investment Board, SoftBank Vision Fund 2 and Walmart.
In an e-mail to employees, flipkart group CEO Kalyan Krishnamurthy said, “… it has always been our endeavor to provide our employees with the opportunity to regularly liquidate their vested options. This year, we are looking to buyback 5% of the vested options for the last three years.” With this a historic event for us, I am happy to share that we are offering our employees an additional buyback of 5% off all vested options as we are committed to creating wealth for you. Huh.”
The weighted average fair value of options granted during the 2019-20 fiscal year stood at $106.9, compared to $111 a year ago, regulatory documents obtained through Basins information platform Toffler showed. In 2019-20, flipkart india Repurchased 48,897 employee stock options compared to 187,974 a year ago. It gave 204,940 options during 2019-20, as against 294,187 a year ago.
In 2018, when Walmart acquired Flipkart, it had reserved $500 million to buy back ESOPs from Flipkart employees. The buyback made a few hundred Flipkart employees dollar millionaires. Flipkart employs over 15,000 full-time employees in India.
Many new age companies including Swiggy, Zerodha and Razorpay are buying back employee ESOPs. ESOP is a widely used retention tool.
ESOP The buyback is part of the latest $3.6 billion funding round led by a group of investors, including GICCanada Pension Plan Investment Board, SoftBank Vision Fund 2 and Walmart.
In an e-mail to employees, flipkart group CEO Kalyan Krishnamurthy said, “… it has always been our endeavor to provide our employees with the opportunity to regularly liquidate their vested options. This year, we are looking to buyback 5% of the vested options for the last three years.” With this a historic event for us, I am happy to share that we are offering our employees an additional buyback of 5% off all vested options as we are committed to creating wealth for you. Huh.”
The weighted average fair value of options granted during the 2019-20 fiscal year stood at $106.9, compared to $111 a year ago, regulatory documents obtained through Basins information platform Toffler showed. In 2019-20, flipkart india Repurchased 48,897 employee stock options compared to 187,974 a year ago. It gave 204,940 options during 2019-20, as against 294,187 a year ago.
In 2018, when Walmart acquired Flipkart, it had reserved $500 million to buy back ESOPs from Flipkart employees. The buyback made a few hundred Flipkart employees dollar millionaires. Flipkart employs over 15,000 full-time employees in India.
Many new age companies including Swiggy, Zerodha and Razorpay are buying back employee ESOPs. ESOP is a widely used retention tool.
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