Kolkata, Jan 17 : ITC Ltd's shareholders have approved the company's employee stock option scheme at its extra-ordinary general meeting (EGM) held here on Wednesday. ITC chairman YC Deveshwar said the scheme was an incentive for the employees of the Rs 8000-crore tobacco conglomerate and was aimed at creating shareholder value. It was approved by the company's board on November 29 last year in a bid to retain talent.Mr Deveshwar also told shareholders that the company will be getting into new areas of activity, such as airlines and insurance.
A special resolution authorising the company to issue and allot shares under this scheme was passed at the meeting. ITC plans to issue 1.23 crore equity shares of Rs 10 face value, which is about five per cent of its paid-up capital of Rs 245.41 crore. Mr Deveshwar told shareholders at the EGM that "this scheme is an incentive for the employees and will create shareholder value."
According to the resolution, the management will restrict the option to 80-odd employees. All directors and senior managers of the company and its subsidiaries will be eligible to receive stocks under the scheme. However, the eligibility criteria for others will be decided later. According to a company release, it will include the performance of the subsidiary in which the applicant is employed, the level of the subsidiary, grade of the employee and any other criterion which the board may decide later.
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