Paytm Links ESOP Vesting to Performance in New Framework
Paytm parent One 97 Communications proposes stricter ESOP vesting linked to employee performance without diluting equity.
NEW DELHI — In a move designed to align employee compensation with operational excellence and shareholder value, One 97 Communications Limited—the parent company operating digital payments leader Paytm—has proposed substantial revisions to its employee stock option framework. The board has submitted resolutions to shareholders seeking approval to tighten vesting conditions under its existing scheme without expanding the company's overall equity pool.
According to the official notice for the company’s 26th Annual General Meeting (AGM), the proposed amendments to the One 97 Employees Stock Option Scheme 2019 establish a performance-differentiated mechanism for future grants. Under the new guidelines, stock options will vest on a graded basis ranging from 10 percent to 100 percent, contingent upon employees achieving rigorous, multi-tiered benchmark evaluation criteria.
Transition from Fixed to Graded Performance Vesting
The core of the revision marks a significant operational shift from Paytm's former vesting structure. Previously, any employee who attained a basic appraisal rating of "Meets expectation" or above automatically qualified for 100 percent of their scheduled vesting options on the designated date, while those rated below received zero.
