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Last Updated : Jul 03, 2020 11:51 PM IST | Source: Moneycontrol.com

Oyo offers employees deeply discounted ESOPs

The company, which claims it has $1 billion in its war chest, has also decided to offer its technology team increments and promotions.

A few months after furloughing many employees, SoftBank-backed hospitality firm Oyo has now decided to offer its employees deeply discounted ESOPs.

"We have offered all our employees deeply discounted ESOPs comparable to Restricted Stock Units and henceforth called RSUs. This means all OYOPrenuers have been enabled to buy the stock of the company at a deeply discounted pre-determined price of value (referred to as “RSUs”) subject to the necessary corporate approvals. This is the first time in the history of the company that such a large part of the organization is being given an opportunity to become stakeholders of the company. The employees include the OYOpreneurs on LwLB who will also be granted deeply discounted ESOPs (RSU comparable hereby referred to as RSU) by OYO and as mentioned, we are already in the process of seeking the necessary corporate approvals," the company said in a statement.

The company, which claims it has $1 billion in its war chest, has also decided to offer its technology team increments and promotions.

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Also Read: COVID-19 impact | Oyo to lay off majority of furloughed US employees: Report

Anil Goyal, group chief technology officer, informed his team members that they will be getting full variable for the period of July 2019- June 2020.

The team will also be getting the salary back which was deducted during the last four months.

"Since everyone is getting their pay cut back in full, you will not be getting RSUs in lieu of it, however each of you have/had an option to take RSU in lieu of the amount back should you so desire," Goyal said in the email.

In April, Oyo had asked some employees to go on leave with limited benefits and also asked all employees in the country to accept a cut in their fixed salaries by 25 percent due to the impact of the COVID-19 on the hospitality industry.

Till early this year, the company had around 10,000 employees in the country.

Oyo confirmed the development.

"Looking at the trends over the last few months and business forecasts for the foreseeable future, we believe a big differentiator will continue to be our technology capabilities and has the potential to positively impact our business recovery curve. Our heightened commitment to investing in our technology capabilities, will, therefore, help us leverage the team’s ability to continuously innovate and redesign to suit the changing needs of our customers, offer the support expected by our asset partners, and enable our organization at large," said a company spokesperson.

"We have therefore announced some waivers on the salary cuts announced for individuals in the technology teams and offered few other benefits to them. We are committed to building one of the best technology teams across the ecosystem. We have a track record of rewarding people for their contributions across functions. Technology is an important area but not the only area we are investing in," she added.

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First Published on Jul 3, 2020 11:13 pm
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