Foradian Introduces ESOP
Posted by Foradian — Aug 11, 2015
Foradian is dedicated to the well-being of its employees and encourage them to give their best. For this, recently, it announced the Employee Stock Ownership Plan, an initiative to offer eligible employees, a chance to be a part of ownership of the company.
What is ESOP?
ESOP or Employee Stock Ownership Plan is an initiative by any company to provide with its workforce a chance to be part of the company’s ownership. What do employees benefit from this? With this plan, employees will have financial benefit for sure, as an additional form of remuneration. The most beneficial factor for employees is when the price of the shares increases over the years. Moreover, this kind of scheme is surely one great way to create savings fund for the future.
Acquiring shares in the company will help the employees to become active co-owners of the company. In a kind, employees are encouraged to participate more, the engagement increases; thus, a way to increase performance and a level of job satisfaction. Employees, who become shareholders enjoys all privileges of a shareholder including active participation in several decision-making processes in the company.
What is the Foradian ESOP Plan all about? How will it work?
The main aim of the plan is to facilitate present and future employees of Foradian Technologies, both under full-time employment or otherwise on effect from July 1, 2015.
To carry out this initiative, Foradian has developed a trust called the Foradian ESOP Trust to organize the ESOP scheme 2015. The trustee or group of trustees appointed by Foradian Board of Directors will be in charge of administering the ESOP 2015 under the advice of a Compensation Committee, which in turn will be comprised of minimum of three directors of the company. The main task of the committee will be to review the performances of employees and recommend them to the Trustees accordingly.
The Compensation Committee will be assisted in the selection process by a Management Committee which includes the CEO of Foradian and representatives of main functions of the company. Once the candidates are selected, shares will be transferred to the respective employees by the trustee or trustees. There is a criteria for evaluation or selection including, obviously, the performance of the employee, his/her designation or position in the company, the level of commitment, criticality of the job responsibility, integrity, service tenure, etc.
The evening party
The ESOP initiative was introduced to the employees in an evening party organized by Foradian. Apart from introducing the ESOP concept, there was a small fun moment of quiz for the employees and a gala dinner after that. Check out some photos from the event below:
