HCL Technologies’ Board has approved a change to its existing long-term incentive programme to include RSU (restricted stock unit) grants as part of the compensation mix.
The programme will include almost 3,000 senior leaders, and is expected to help employee retention as the technology industry sees high attrition and talent crunch as industries struggle to find people skilled in new technologies.
The company will move from 100 per cent cash awards to a mix of 70 percent cash, 30 per cent RSUs for the grants it will offer later this calendar year.
Subject to shareholder approval, the plan proposes to allocate 11.1 million shares (equal to less than .50 per cent of the company’s equity shares) to almost 3,000 senior leaders.
The plans will be offered as tenure-based vesting by FY2025, and the company has also proposed an option to substitute this part of the plan with RSUs that vest based on achievement of long-term performance targets.
“We continue to see strong growth momentum in the business, and we are happy to extend long term wealth creation opportunities in the form of RSUs for a greater number of senior leaders,” said C Vijayakumar, HCL Technologies CEO and Managing Director in a statement.
The structure of the programme will ensure there is no equity dilution for existing shareholders of the company. The total plan investment will not be impacted by the move from all cash to cash plus RSUs, HCL added.