Tata Motors approves issuing performance shares to reward employees

Performance shares are a form of an incentive awarded to employees if certain performance objectives are met.

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26 Aug, 2025 12:21

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Tata Motors’ board of directors has approved issuance of performance shares to its own employees and the employees of its subsidiaries under the long-term incentive scheme.

Performance shares are a form of an incentive awarded to employees if certain performance objectives are met. These are similar to employee stock options (ESOP) but are considered as a reward unlike ESOP which are part of the compensation package.

“The Board of Directors, at its meeting held on June 23, based on the recommendation of Nomination and Remuneration Committee, approved the Issue of Performance Shares and/or Options to the eligible employees of the Company and its subsidiary companies as per the SEBI (Share Based Employee Benefits) Regulations, 2015 not exceeding 0.25% of the Company’s issued share capital,” Tata Motors said in a statement.

The move is subject to approval of the shareholders at the ensuing Annual General Meeting of Tata Motors. IT giant Infosys had issued 5 crore shares to its employees two years ago equating to 1.15 percent of the company’s equity shares. These were awarded based on performance of the employees.

For FY21, Tata Motors consolidated net loss widened to Rs 13,395 crore from Rs 11,975 crore loss posted in FY20. At the stand-alone level the company managed to reduce its net loss to Rs 2,395 crore for FY21 as against Rs 7,289 crore posted in FY20.