ESOPs Worth INR 1,044.13 Cr Granted To Top Policybazaar Honchos In FY22

PB Fintech, the parent company of fintech player Policybazaar granted ESOPs (employee stock ownership plans) worth INR 1,044.13 Cr to three top executives in the financial year 2021-22 (FY22). 

Giving a breakdown of the data, the listed company said that PB Fintech chairman and cofounder Yashish Dahiya received INR 613.83 Cr in ESOPs while executive vice-chairman and another cofounder Alok Bansal was granted options amounting to INR 360.92 Cr in FY22. Both Dahiya and Bansal are among the three key managerial personnel (KMP) of the fintech player. 

Besides, Policybazaar president Sarbvir Singh received ESOPs worth INR 69.38 Cr in the period under review. 

Over the course of the financial year, Dahiya received 7.1 Mn in grants, Bansal pocketed 3.08 Mn ESOPs, and Singh bagged ESOPs worth 10.2 Mn.

Of the total 18 Mn ESOPs granted by the listed fintech player in FY22, these three top executives took home close to 61% of the total grants. The downpour of ESOPs came during the same year as the company made its debut on the bourses. 

Interestingly, the report also noted that around 12.06 Mn stock options granted to the founders, Sarbvir Singh and Paisabazaar CEO Naveen Kukreja have a vesting period of five years, provided the market-capitalisation of the listed fintech player remains above $5 Bn (around INR 39,000 Cr according to current estimates) based on the average share price during the vesting year.

“However, in case the market valuation is less than $5 Bn (USD Five Billion) during the vesting year then it would be carried forward to future years and will be vested in the coming years, whenever the average yearly market valuation is above $5 Bn”, added the annual report. 

PB Fintech’s market capitalisation stood at INR 23,050.35 Cr at the end of intraday trading on Friday. 

In its annual report, the fintech firm said that Yashish Dahiya and Sarbvir Singh were not paid any remuneration by the company barring ‘perquisites arising on exercise of ESOPs’ during the period.

Even as it claims to have ‘not paid any remuneration’ to its top executives, related party transaction filings made public by the fintech major showed that the share-based payments to the firm’s KMPs zoomed 5X to around INR 406 Cr in FY22. 

The company earmarked record stock grants for its founders even as the fintech player continues to be marred by mounting losses and rising expenses. In the first quarter of the financial year 2022-23 (FY23), PB Fintech’s consolidated net loss rose 84% YoY to INR 204.33 Cr, while employee expenses shot up 81% YoY to INR 381.65 Cr during the same period.

In a deep dive into the salaries of fintech startup founders, Inc42 found that Yashish Dahiya received INR 2.01 Cr in emoluments while Bansal bagged INR 1.56 Cr in salary 

Of late, many cofounders have come under fire for reserving big chunks of ESOPs even as the company continues to be doldrums.

Inc42 earlier reported that Deepinder Goyal took home ESOPs worth INR 387 Cr in the second half of FY22 while Zomato’s three KMPs cost the foodtech unicorn INR 779 Cr in stock grants in the entirety of FY22.