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(Photo: Mint)
(Photo: Mint)

Oyo grants discounted ESOPs to make all employees shareholders

Oyo has sent off letters to staff stating it has decided to make every employee a shareholder, said a person working at the hospitality unicorn

Bengaluru: In a letter to employees, hospitality unicorn Oyo said they will be making every employee a shareholder in the company, providing them with ‘deeply discounted ESOPs’.

The letter, which was signed off by Oyo’s chief human resources officer Dinesh Ramamurthi, earlier this week, stated that the company is giving deeply discounted ESOPs, comparable to restricted stock units (or RSUs), and in turn helping employees become shareholders in the company, at a deeply discounted price, said an employee who didn’t want to be identified.

An Oyo spokesperson confirmed the development.

“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," said an Oyo spokesperson.

“The employees also include the OYOpreneurs on ‘leave with limited benefits’ who will also be granted deeply discounted ESOPs (RSU comparable hereby referred to as RSU) by Oyo," added the Oyo spokesperson.

The employe mentioned above confirmed that these RSUs are granted on June 1, 2020, and can be vested only after a year from the date of grant. This means that employees need to be active in the company until June 1, 2021 to exercise this option. The price per RSU is currently decided on 10 per option.

Just a week back, Oyo said that it will be laying off a large number of its furloughed staff in the US, and will be provided with stock options.

In April, Oyo in India had also announced salary cuts, reducing fixed compensation of employees by 25%, along with furloughing staff for four months, starting 4 May.

This week, Mint reported that the hospitality unicorn has suspended contracts with more than 250 hotel owners across India, as it looked to renegotiate fixed payment agreements, as revenues took a direct, owing to the ongoing Covid-19 pandemic.

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