Paytm, one of India’s largest digital payments and financial services companies, has expanded its ESOP pool further by 2.8 lakh stock options. Looking to undertake the protection and rewarding of top talent, which is very critical to its operations and growth plan.

Paytm Increased ESOP Pool

PC: Entrackr

ESOPs, or employee stock ownership plans, are a type of equity compensation that firms give to their employees. They offer the right for an employee to purchase shares of the company at a preset price, which is normally below the market price. It thus aligns the interest of the employee with that of the company shareholders, thereby motivating them to perform.

For Paytm, the increase in the ESOP pool by 2.8 lakh stock options depicts a huge investment in its manpower. The stock option would get distributed amongst employees at different levels and functions. ESOP is given not only for attracting the best talent for the firm but also to motivate the existing ones by providing them with the opportunity to participate in the growth and progress undertaken by the company.

ESOPs act as a retention tool and are more predominantly seen in very competitive sectors where talent is highly sought after. They make the employees have a reason to stay longer within the company, for their stock options generally rise in value with improvement in the performance and valuation of the firm over some period of time. This derives job satisfaction and enhances loyalty.

Notably, the decision to extend its ESOP pool comes at a time when Paytm is on an aggressive expansion drive, increasing its market presence while augmenting the bouquet of services. Among Indian digital payment platforms, Paytm remains at the forefront through this fertile field of financial technology, be it on a range of services working to meet user and business needs alike. With leading talent sourcing and retention across technology, product development, marketing, and customer service, the company’s growth trajectory remains poised at this very fulcrum.

By doing so, Paytm’s management has rewarded not only employees but also reinforced its culture of ownership and commitment. Employees with ESOPs, by their very nature, have a greater propensity for long-term engagement with the firm’s success, which obviously means productivity and innovation can be higher. This enunciates that this emphasis by Paytm is toward building a sound, motivated workforce that has the capacity to drive growth through innovation in the digital payments sector.

In the final analysis, increasing 2.8 lakh stock options in its existing ESOP pool simply manifests Paytm’s strategic approaches to talent management and firm-wide employee engagement. With equity participation, the company designs a collaborative and performance-driven culture at work among employees by incentivizing staff to work toward the attainment of objectives set out by the company. It not only rewards its staff with a stake in its future, but also serves to better position itself in talent acquisition and retention against its competitors.

On one hand, expanding the ESOP pool underscores the belief that employees are the mainstay of Paytm’s long-term growth storyline and innovation in the digital economy.