Zomato, Paytm dole out ESOPs to top executives in H1FY23 despite losses

Even as new-age tech start-ups grapple to become profitable, companies have not stopped rewarding top executives with employee stock options (ESOPs) worth crores.

According to regulatory filings by Paytm and Zomato, key managerial personnel have been rewarded ESOPs worth crores during the first half of FY23.

Paytm, under its related-party transactions disclosure, stated that ESOP expenses due to key managerial personnel were Rs 568.9 crore for April-September. This includes salary, bonus and incentives.

In the case of Zomato, expenses for the period were Rs 380 crore.

Zomato’s net loss narrowed to Rs 251 crore for the quarter ended September 2022, compared to Rs 420 crore during the same period a year ago.

Revenue from operations increased 62.2 per cent to Rs 1,661 crore from Rs 1,024 crore during the year-ago period.

However, the firm’s stock price is still below the issue price.

Zomato’s share price at the end of trading on Friday was Rs 63.70 on the NSE. The company’s issue price was in the range of Rs 72-76.

Meanwhile, Paytm closed at Rs 467 per share on the NSE from the IPO price of Rs 2,150.