Proxy firms lock horns over Crisil Esops

IiAS says low exercise price of amended scheme a drag on profits

A proposal to revise the exercise price of employee stock option plan (Esop) by rating major Crisil has evoked conflicting reactions from proxy advisory firms.

The rater has moved a resolution to amend the Esop scheme in the upcoming annual general meeting scheduled on April 20. It has proposed to revise the exercise price of 1.62 million un-granted options of the Company ESOP Scheme (ESOS-2014) from “market price per share” to “either face value or market price per share”. The rationale given for the move was that the current stock option pool may not be adequate given the exercise price considering