Nalco first PSU to introduce ESOP

Navaratna PSU National Aluminium Company (Nalco) has added another 'first' to its credit.

India's leading producer and exporter of aluminium, Nalco has become the first public sector undertaking (PSU) to initiate action for Employees Stock Option Plan (ESOP), for offering its share to its employees, company sources said here today.

This decision of the Board of Nalco was endorsed in an Extraordinary General Meeting of the Company’s shareholders held here yesterday.

The ESOP is planned to be issued to the executives of the company as part of payment of dues to them under Performance Related Payment (PRP), a component of revised pay package, sources said.

The detailed scheme of ESOP including price would be worked out subsequently, they said.

As per the guidelines of Dept of Public Enterprises (DPE), all CPSEs are required to formulate ESOP and 10% to 25% of the PRP should be paid as ESOP instead of in cash.

This scheme is expected to considerably improve performance and involvement level of the employees in the Company, it claimed.