New Delhi: India’s food delivery platform, Zomato has approved an employee stock option plan (ESOP), granting nearly 1.2 Crores of Shares to its employees. The news Announced today on October 5, 2024 and is aimed at rewarding and retaining their Employees as the company is all set to foray on quick delivery space, and is likely to end the monopoly of this space.
According to regulatory filings, Zomato has allocated more than 1.2 crores shares under its Zomato ESOP 2021 scheme, with an additional 116 shares issued through its older Foodie Bay ESOP 2014 plan. The total value of these shares is estimated at approximately ₹330 crore, based on Zomato’s current stock price of around ₹275 per share on the National Stock Exchange (NSE).
Due to this move, in their previous trading session a 2.10 % hike on Friday 4th October is visible which highlights its commitment to employee retention by offering them a chance to be stakeholders in the company’s success. Stock options have become a widely used strategy in high-growth sectors like tech and food delivery to incentivize employees. They not only offer financial rewards but also align employee interests with the company’s long-term performance.
In the broader context, ESOPs can be a game-changer for employees. They give staff the opportunity to own a piece of the company, creating a sense of responsibility and motivation to contribute to the organization’s success.
Zomato has been on an expansion spree and continues to innovate within the food tech space. The ESOP initiative complements other growth strategies by helping the company maintain a motivated and skilled workforce, and is very important for a company to stay ahead of their rivals like Swiggy, allotment of shares could also be part of the company’s broader efforts to attract talent across various roles, from delivery operations to technology development.
With this decision, Zomato is all set to grab Audience and Employees retention and on the other hand creates a great public image for their shareholders as well.
