In a bid to motivate its employees, hospitality chain OYO has approved a proposal to add 2,000 stock options to its Employee Stock Ownership Plan (ESOP).
“The approval and consent of company members be and is hereby accorded for increasing the employee stock option pool of the company by adding 2,000 stock options from the present limit of 6,893 stock options of the company, which upon exercise shall become an aggregate of 8,893 shares,” according to a resolution passed by the OYO board on October 3.
OYO has more than 10K employees. The resolution comes after the company’s board approved the new ESOP 2018 plan in July with an aim of “motivating employees and giving them a chance to enjoy the benefits of phenomenal growth the firm foresees.”
An OYO spokesperson reportedly said, “We introduced the ESOP plan for OYOpreneurs in July 2018 and keeping in mind our growth trajectory, have strengthened the existing ESOP pool by adding more options to it.”
Launched in May 2013, OYO is currently present in more than 350 cities globally, with over 12,000 asset owners spread across India and the world. It has about 270K franchised and leased rooms as a part of the chain. OYO claims to host more than 125K stayed room nights every single day. After a $1 Bn boost from SoftBank in its latest funding round, OYO is said to be valued at $5 Bn.
The company has been expanding its global footprint across countries like Indonesia, Japan, China, Malaysia, etc, and has also been extensively expanding its portfolio with acquisitions such as Mumbai-based Weddingz, an online marketplace for wedding venues and vendors; Chennai-based service apartment operator Novascotia Boutique Homes (in March), and IoT technology venture AblePlus (in July).
To reduce attrition rates and get employees invested in the company’s growth, many startups are awarding stock ownership in form of ESOPs.
Earlier this month, nearly 140 employees of Bengaluru-based Razorpay participated in an ESOP plan at a 50% premium to the valuation.
In May, food delivery unicorn Swiggy’s board had approved its first ESOP, estimated at over $4 Mn (INR 27 Cr), to be implemented in June.
[The development was reported by ET.]