In a unique move, Ideas2IT, a high-end product engineering company headquartered in Chennai, has decided to share ownership with its employees.
The company has unveiled an “Employee Ownership Programme”. Touted as a strategic initiative, the programme is aimed at "providing genuine ownership to ensure a pleasurable and continuous journey”.
Under this initiative, employees will get a 33% stake in the company. Of this, 5% will be given to 40 select employees who have been with Ideas2IT since inception. The rest will be distributed to all the employees.
Founder Murali Vivekanandan told this correspondent that employees would be given RSUs (restricted stock units). RSUs are a form of incentive that an employer grants to employees. These are equity shares of the company that come with a vesting period attached. Since the employees get them in the form of an incentive, they are not liable to pay any money for the shares.
Ideas2IT’s software engineers leverage emerging technologies such as AI-ML, NFT, Web3, Cloud, Blockchain, IIoT etc. to deliver projects to Fortune 500 companies such as Facebook, Bloomberg, Microsoft, Oracle, Motorola, Roche, Medtronic and the like.
Vivekanandan said that post allotment of the RSUs, his wife and he would each hold 1/3rd of the company's shares (66.66 percent in total) while the remaining 1/3rd would be held by employees. He indicated that Ideas2IT would issue fresh shares to induct employees into ownership. The company has a headcount of over 750. Its operations are spread across India, the US and Mexico.
“...the selected employees will become valued stakeholders, aligning their interests directly with the company’s long-term success,” said Vivekanandan.
"We believe in recognising and rewarding the exceptional talent that drives our success and growth. The programme will surely be an inspiration to other employees," he added. “This move ensures that employees are not just contributors but true partners in the company's success," he said.
Vivekanandan expects the move to have a ripple effect across the industry.
On Tuesday, Ideas2IT felicitated its employees at an event in Chennai by rewarding "50 Cars for 50 Employees” as part of a wealth-sharing initiative, which was initiated last year.
In April 2022, the company gifted 100 Maruti Suzuki cars to 100 employees "for their constant support and unparalleled contributions to the company's success and growth”.
Gifting of cars has become a trend. In April 2022, Chennai-based software-as-a-service (SaaS) company Kissflow, which was celebrating its 10th year, presented luxury BMW cars to five of its senior leadership team.
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