India: OYO grants discounted ESOPs to make its staff shareholders

The logo of OYO, India's largest and fastest-growing hotel chain, installed on a hotel building is seen through wires in an alley in New Delhi, India, September 25, 2018. REUTERS/Anushree Fadnavis

In a letter to employees, hospitality unicorn Oyo said they will be making every employee a shareholder in the company, providing them with ‘deeply discounted ESOPs’.

The letter, which was signed off by Oyo’s chief human resources officer Dinesh Ramamurthi, earlier this week, stated that the company is giving deeply discounted ESOPs, comparable to restricted stock units (or RSUs), and in turn helping employees become shareholders in the company, at a deeply discounted price, said an employee who didn’t want to be identified.

An Oyo spokesperson confirmed the development.

“We have offered all our employees deeply discounted ESOPs comparable to restricted stock units and henceforth called RSUs. This means all OYOprenuers have been enabled to buy the stock of the company at a deeply discounted pre-determined price of value (referred to as “RSUs”) subject to the necessary corporate approvals,” said an Oyo spokesperson.

The employe mentioned above confirmed that these RSUs are granted on June 1, 2020, and can be vested only after a year from the date of grant. This means that employees need to be active in the company until June 1, 2021 to exercise this option. The price per RSU is currently decided on 10 per option.

Just a week back, Oyo said that it will be laying off a large number of its furloughed staff in the US, and will be provided with stock options.

In April, Oyo in India had also announced salary cuts, reducing fixed compensation of employees by 25%, along with furloughing staff for four months, starting 4 May.

This article was first published on livemint.com.

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.