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HomeNewsBusinessCoronavirus crisis | Startups now offer more ESOPs to compensate for pay cuts: Report

Coronavirus crisis | Startups now offer more ESOPs to compensate for pay cuts: Report

Zomato, Oyo Hotels & Homes, Grofers and Bounce are some of the startups raising their ESOPs pools after salary cuts

May 08, 2020 / 11:27 IST

Some startups are offering additional stock options to their employees to cushion the impact of salary cuts during the lockdown.

Zomato, Oyo Hotels & Homes, Grofers and Bounce are some of the startups raising their employee stock options (ESOPs) pools after salary cuts, The Economic Times reported.

Moneycontrol could not independently verify the story.

India is currently in a nationwide lockdown, which began on March 25, to contain the spread of COVID-19.

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Zomato and Oyo declined to comment when approached by The Economic Times, while Grofers and Bounce have not yet responded.

Around 2,700 Zomato employees who took voluntary pay cuts have been issued additional stock, the report.

The food delivery company already had a pool of ESOPs that were unallocated, sources told the paper.

Some other companies have dipped into the founders' stakes to issue additional ESOPs, the report added.

Online grocer Grofers is hiking the size of its ESOPs pool by $25 million, the report said. This increase will be a part of a fundraising round where Grofers expects to raise $60-70 million.

"This makes a lot of sense. Any company undertaking pay cuts, faces the risk of losing employees, and this (issuing additional stock) is one of the good levers to retain talent," said Harshil Mathur, chief executive of Razorpay told the publication.

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Moneycontrol News
first published: May 8, 2020 11:27 am

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