Vedanta grants Rs 2,500 crore stock options over 5 years

ESOP 2025, involves stock options worth more than ₹500 crore and covers nearly 1,200 first-time recipients, including early-career employees.

Shares under the programme are allotted at Re 1, among the lowest in ESOP structures across India Inc, according to Vedanta.

Vedanta said nearly 40% of its workforce across plants, functions, and seniority levels is now covered under its equity programme, a departure from conventional ESOP models that typically favour senior management.

Fresh graduates are eligible for stock allocations equivalent to about 30% of fixed pay over a standard three-year vesting period.

The most recent vesting cycle, ESOP 2022, resulted in more than 80% appreciation in share value, generating over ₹300 crore in cumulative gains for employees. The company attributed this to sustained stock performance, with Vedanta shares trading near record highs.

Shares of Vedanta were trading 0.76% higher at Rs 676.8 apiece on the BSE on Wednesday. The stock has surged nearly 12% since January 1 and nearly four times over the past five years.

Employee stock ownership has been part of Vedanta’s compensation framework for more than two decades, with the programme expanding in scope over the last five years.

According to the company, the ESOP structure is performance-linked, with allocations tied to roles critical to its future operations, including automation, digitalisation, artificial intelligence-led processes, operational efficiency and sustainability initiatives.