Published
Sep 20, 2018
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Flipkart staff to gain under employee stock option plan with Walmart acquisition

Published
Sep 20, 2018

Flipkart has notified its employees with stock options that they can tender a part of their shares under the employee stock option plan (ESOP) before the end of the month showing its continued employee commitment after its acquisition by Walmart.


Flipkart has notified its employees with stock options that they can tender a part of their shares under the ESOP


Flipkart has been keen to show that little will change following its acquisition by the US-based business Walmart. The e-commerce business stated early on that its top executives would remain Flipkart employees and that it would still be Flipkart behind the wheel, not Walmart, at least for the foreseeable future.

TNN reported that the business contacted its employees via email to announce that current employees can tender part of their shared under the ESOP. In May, the business announced that current employees could tender 50 percent of their shares in the first year and former-employees could tender 30 percent. The share buyback programme will be completed by the end of September and both employees and former-employees will be able to encash the remainder of their shares over the following years if they so wish.

According to a Walmart filing, Flipkart’s ESOP share pool totals 11,947,026 shares and Walmart is looking to purchase 6,242,271 shares. TNN has estimated the average share price at $130 (Rs 9,360) and therefore Walmart’s total spend at $800 million if all employees tender their allowed number of shares. However, share prices were not set in the company email.

Protests, especially those organised by the Confederation for All India Traders (CAIT), have voiced fears that Flipkart’s foreign ownership could adversely affect Indian workers and traders. Flipkart is currently working to convince traders’ bodies and authorities that this will not be the case.

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