Meesho announces ‘ESOP for all’ with its latest MeeSOP program
Meesho has enabled wealth creation through second ESOP (Employee Stock Ownership Scheme) liquidity in less than a year.
Under the programme, every full time employee, irrespective of their tenure in the company or their seniority, will be able to convert a maximum of 25 per cent of their annual CTC into ESOPs, subject to a minimum of Rs 50,000. The ESOP so given will be more than 100% of the CTC foregone.
“Our frequent and timely buybacks ensure that our employees continue to grow with us. The MeeSOP program takes this commitment further, breaking down the hierarchy to make each employee the boss, and providing more opportunities for wealth creation,” said Vidit Atre, Founder and CEO, Meesho. “As we hire more talent, we will continue to provide our team with the means to achieve their personal and financial goals.”
Unlike traditional ESOP plans, the MeeSOP program is fully inclusive, providing every employee, irrespective of their seniority, to benefit from Meesho’s rapid growth, while ensuring that 100% of the grant is paid over a period of one year. be contained till the end. This provides both opportunity and control to the opting employees and helps them to capitalize on Meesho’s frequent ESOP liquidation programs. Meesho ESOPs are also one of the strongest in the startup space, with the company offering negligible strike price, monthly vesting after the first 12 months and non-cancellation of vested shares even after liquidation.
In October of this year, Meesho announced a $5.5 million ESOP liquidity program for all eligible current and former employees with vested stock – its second liquidity program in less than a year. Over the same period, the company’s valuation increased more than 2x to $4.9 billion following a Series F fundraise of $550 million.
On Friday, Walmart-owned digital payments firm PhonePe also announced buyback of employee stock options (ESOPs) worth Rs 135 crore. The buyback offer follows a three-tier model based on seniority. The founders of the company will not participate in the buyback. The top leadership of the firm can sell up to 10 percent of its vested stock. All other existing employees can sell up to 25 percent of their vested stock.
Last December, PhonePe launched its ESOPs program, where it allocated ESOPs to all its 2,200 employees starting at least Rs 3.5 lakh, taking a total of Rs 1,500 crore.
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