38.6c New Delhi, India, Wednesday, May 29, 2024

OYO Announces ESOPs for All Furloughed Employees

By Priyam Jain      02 June, 2020 05:41 PM      0 Comments
OYO Announces ESOPs for All Furloughed Employees

Amounting to a whopping Rs 130 crore, the hospitality firm OYO is granting employee stock ownership plans (ESOPs) to all its furloughed employees impacted by the COVID-19 pandemic as part of its efforts to minimize the disruption being experienced by them as stated in an e-mail from its founder Ritesh Agarwal on Monday. 

Recently, OYO founder and CEO Ritesh Agarwal have stated in a letter and video message that the company will place a certain number of employees on furloughs or temporary leaves, globally. 

In a recent report, it was revealed that the number of furloughed employees globally could run in thousands and that the company did not share any details regarding the number of employees impacted by the said scheme. 

Agarwal in an internal town hall to its impacted employees said that while he hoped that the company can get as many employees back, he is cognizant of the practical reality that the uncertainty around the COVID-19 situation will continue for some time. 

He further added that “I would like to recognize your contributions and this love and passion for OYO by making you a co-owner and shareholder of the company. I would like to inform you that all impacted OYOpreneurs would be eligible for ESOPs worth around Rs 130 crore.” 

Agarwal further commented by stating that the details regarding the employees' specific grant would be share on e-mail separately and would be will be detailed as per their band and geographies. 

He further announced, “In addition, we also understand that some of you may already have stock options. For those employees, we are dropping the one-year cliff on the vesting stock options for everyone we have hired in the past year. This will ensure that everyone departing, regardless of how long they have been with OYO, can become a shareholder.” 

Elucidating on the said issue he added that the company would provide stocks to employees not impacted and that this would indeed make 100 percent team members co-owners. 

Adding to the same he stated, “This is the first time in the history of the company that such a large part of the organization is being inducted as a stakeholder. That too at a time when some of you may decide not to be part of our future. This is a small token of gratitude from us for your contribution to building the company and for your unwavering support to us in good as well as bad times.”

The company has also announced placement support for furloughed employees, keen to explore opportunities outside of the company or industry given the uncertainty around the timelines for complete business revival. 

Ritesh further said, “The organization will also come up with an institutionalized placement support system for those who wish to avail it.” He also commented that he was extremely sorry for the impact this pandemic had on his employees and that he wanted to re-emphasize that “this is not your fault in any way. This is a scary and tough time for all of us in different ways.” 

He also added that he was happy to share the news that in Japan, the company has helped about 150 OYOpreneurs through this route and that the company has also formed an exigency fund for the employees who may need it for some critical illness cases.  

Lastly, he remarked, “I am privileged to have worked with all of you. Thank you for helping the company get where it is today and for being an integral part of our company. Thank you for being a part of our lives. Thank you for coming to OYO. We all are better because of it.” 

Share this article:

Leave a feedback about this

Trending Business
Battle Over Butter Chicken: Moti Mahal Takes Daryaganj to Court in Trademark Showdown

Moti Mahal and Daryaganj restaurants clash in Delhi High Court over trademark claims, each asserting they invented Butter Chicken and Dal Makhani.

28 May, 2024 11:33 AM
Trending Judiciary
Punjab and Haryana High Court Upholds ED's Arrest of AAP MLA, Dismisses Plea Challenging Detention [Read Order]

Punjab and Haryana High Court dismisses AAP MLA Jaswant Singh's plea against his ED arrest, ruling it was in line with Section 19(1) of the PMLA.

28 May, 2024 11:56 AM


Trending Judiciary
No legal mandate for uploading of Form 17C on website or handing over to anyone other than candidate or agent, EC tells SC

EC tells SC there's no legal mandate to upload Form 17C on websites or provide it to anyone other than candidates or agents, citing risks of misuse and mistrust.

23 May, 2024 11:28 AM
Trending Judiciary
'National security always paramount,' SC cancels bail of PFI members [Read Judgment]

SC emphasizes national security, cancels bail of eight PFI members, stressing balance between civil liberties and counter-terrorism under UAPA.

23 May, 2024 12:05 PM
Trending Judiciary
Calcutta HC Invalidates Five Lakh OBC Certificates Issued After 2010, Cites Unconstitutional Grounds [Read Judgment]

Calcutta High Court invalidates OBC certificates issued after 2010, declaring them unconstitutional. Court cites undue haste and procedural impropriety.

23 May, 2024 03:33 PM
Trending Judiciary
MP High Court Grants Police Protection to Couple Facing Honour Killing Threats over Marriage [Read Order]

MP High Court grants police protection to a couple facing death threats from their parents for marrying without consent, citing serious measures against honor killings.

23 May, 2024 03:45 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email