Published
May 15, 2017
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Snapdeal likely to offer USD 30 million as payouts to staff

Published
May 15, 2017

Indian e-tailer Snapdeal is likely to offer USD 30 million (Rs 193 crore) bonanza to its staff of about 1500 to 1000 if the homegrown e-commerce firm is taken over by larger rival Flipkart, a media agency reported citing sources.


Reuters

 
If the deal goes through, the founders will give half of their payout (USD 30 million) for the proposed scheme which would cover all current employees of Snapdeal, said sources familiar with the matter.
 
"The founders have asked the Board to carve out USD 30 million (about Rs 193 crore) from their settlement for payouts to the Snapdeal team. They want to ensure that the team does not get sidelined in any manner," they added.

Some former senior executives of Snapdeal, who have left the firm in the last 12 months, could also benefit from the process.
 
E-mails sent to Snapdeal did not elicit any response.
 
The intent is also to compensate for the ESOPs that were issued to senior employees.
 
The value of their shares and options have eroded and would be worthless once the deal is signed, one of them said.
 
Interestingly, the deal-linked payment would also be extended to employees who do not own ESOPs to reward those staying on with Snapdeal till the proposed transaction with Flipkart is complete.
 
If the deal goes through, Snapdeal founders will get USD 60 million (cumulative), of which half will be given to employees.

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