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Economic Survey 2020 moots performance-linked employee stock options for public sector bank staff

The Survey suggested that ownership would encourage innovation and risk-taking as against conservatism which is the typical mind-set of employees in PSBs.

January 31, 2020 / 05:38 PM IST

The Economic Survey 2019-20 has made a case for performance-linked payouts in the form of employee stock option plans (ESOPs), despite several failed attempts by public sector banks (PSBs) to popularise the scheme among its employees in the past.

The Survey suggested that ownership would encourage innovation and risk-taking as against conservatism, which is the typical mindset of employees in PSBs.

“Employees can constitute one of the blocks of new owners of PSBs through an employee stock ownership plan (ESOP) that is conditioned on employee performance,” said the Economic Survey released on January 31.

These suggestions come at a time when PSB employees have declared a two-day nation-wide strike on January 31 and February 1, demanding higher pay hikes and five-day workweek among other conditions.