September 1, 2011

Majority of Surveyed Indian Companies Offer Options

Executive Director

KPMG surveyed 350 public and private companies in India and found that nearly two-thirds offer stock options to employees. Indian firms were nearly twice as like to offer options than were global companies, and the report concluded that "Companies consider ESOPs as an incentive tool which enhances productivity, motivates employees and increases employees' interest in the company's overall performance" (employee stock option plans are referred to as ESOPs in India). It further noted that recruiting and retaining talent were the primary motivation for adopting broad-based options (see summary at this link).