Infosys Launches ESOP Scheme After 13 Years

Mangalore Today/ PTI

Bengaluru, July 15: IT major Infosys on Friday said that it will launch its employee stock option programme or ESOP scheme in a bid to control attrition, which picked up sharply in the June quarter.

"Infosys has relaunched its employee stock option programme after a gap of 13 years," said Infosys chief operating officer Pravin Rao.

ESOP enables employees to own equity in the company and acts as morale booster, analysts said. The ESOP is often at no upfront cost to the employees.

The move comes at a time when more employees left Infosys in the June quarter. India’s second largest IT services outsourcer said Q1 attrition rose to an annualized 21 per cent versus 17.3 per cent in the previous quarter.

Infosys hired a total of 13,268 employees during the quarter, but 10,262 employees quit during the same period. The net employee addition during the quarter stood at 3,006, Infosys said.

According to Infosys, the bump-up in attrition was partly on account of seasonality as some employees leave to pursue higher education during the June quarter.

"Higher performers’ attrition has come down... At this stage we are not concerned," Mr Rao said.

As of June 30, Infosys employed a total of 1.97 lakh employees.

Meanwhile, Infosys shares slumped over 10 per cent today, following the IT major’s Q1 earnings announcement.