PhonePe given shares to each employee worth of rupees 3 Lakh.

PhonePe given shares to each employee worth of rupees 3 Lakh.

PhonePe has given stock worth of $200 million (about Rs 1,458.6 crore) to its 2,200 employees, In India one of the largest employee stock ownership plans (ESOP) by a startup, payments major PhonePe has issued shares worth of Rs. 1,500 crore to all its 2,200 staff across all employees.

What Is an Employee Stock Ownership Plan (ESOP)?

An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company. ESOPs give the sponsoring company, the selling shareholder, and participants receive various tax benefits, making them qualified plans. Companies often use ESOPs as a corporate-finance strategy to align the interests of their employees with those of their shareholders.

As per management The PhonePe stock option plan is a core component of the company's compensation philosophy "crafted to encourage collaboration, long-term focus and organization-first thinking,".

In 2018, Flipkart was acquired by Walmart, and PhonePe was also part of the transaction.