Oyo has offered shareholding to its employees by providing them ‘deeply discounted ESOPs’. The company said in a letter signed by Oyo’s chief human resources officer Dinesh Ramamurthi that it 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.”
A Spokesperson of Oyo said, “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”.
The spokesperson added, “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”.
According to an employee of Oyo, “RSUs are granted on June 1, 2020, and can be vested only after a year from the date of grant”. So, in order to be able to exercise this option, employees are required to be active in the company until June 1, 2021. The price of each RSU is pegged at ₹10 per option.
Last week, Oyo announced that it planned to lay off a large number of its furloughed employees in the U.S and provide them stock options with the company.