e-Com Cos to Offer 'Accelerators' For ESOPs to Top Talent

BANGALORE: Some of the principal ecommerce companies like as Amazon, Flipkart, Myntra,  Snapdeal, Jabong, Paytm, Ola, Groupon and Urban Ladder   have  recently started presenting 'accelerators' for their  employee stock options (ESOPs) that is given  to top talents.  These kinds of options will go without delay into any kind of liquidity event that includes IPO or sales of the company.

However companies didn’t comment either due to unavailability or refusal.  industry expert Ashu Malhotra said” This (accelerated vesting) is needed to attract great talent and to create a differentiator in compensation". Several other search experts and Consultants say it is mainly observed due to the Series B and other upward funded startups.

GC Jayaprakash, executive director at RGF Executive Search"This is a general practice happening in ecommerce companies in the last few months and it are done to attract and retain senior talent".

 Apart from aiding employees obtain accelerated vesting options they also behave like a security net during and the episode of a layoff specifically after a merger.  This eliminates chances of employees being stuck in a worthless paper stock.

Anandarup Ghose, practice lead performance & rewards at Aon Hewitt said "Layoffs and redundancies at some startups have everyone scared. Candidates are getting cautious," says Debabrat Mishra, director, Hay Group India. "It is only natural for executives to want to be protected if they feel there could be an exit in future”.

Accelerated vesting clauses are presently becoming the trend where a good number of ecommerce companies are providing   a good 60pct of total compensation for their stock options.

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