Tata Motors announces share scheme could net employees ₹168cr
Business
Tata Motors Passenger Vehicles Ltd just announced a new share-based incentive scheme that could give employees a collective pre-tax gain of up to ₹168 crore.
Basically, eligible team members can buy shares worth ₹169 crore for just ₹1 crore (in total), but only if they hit certain performance and service goals.
Plan offers 50L PSUs, 0.14% dilution
The plan offers up to 50 lakh performance share units (PSUs), with each unit equal to one equity share at a face value of ₹2.
Employees need to meet set targets and stick around long enough for their shares to vest, and then exercise their vested units within 12 months.
If everything lines up, the maximum dilution is just 0.14% of the company's total shares, so it's a win-win for both staff and Tata Motors.