Hotel aggregator OYO has announced its first Employee Stock Ownership Plan (ESOP) for 250 employees in a secondary share acquisition programme worth $5.7 million – $7.1 million (₹40-50 crore). The ESOP plan is set to roll out in January 2019.
In August, the board of OYO approved its ESOP Plan 2018 which was aimed at motivating employees to continuously create value for OYO and enjoy the benefits of the company’s growth. In November, the company added 2,000 stock options to the plan.
Now OYO will implement a multi-year staggered liquidity schedule for its ESOP holders by way of facilitating the secondary sale or through other liquidity.
The ESOP plan is carried out by a secondary acquisition programmed led by one of its existing investors.
The company expects the total ESOP secondary sale programme to be worth around $150 million – $200 million over the next few years.
Out of OYO’s more than 10K employees, the eligibility for awarding ESOPs was calculated based on the individual’s role, contribution, and long-term potential, the company said.