Yesterday, on 16th May 2019 Infosys disclosed its approval on the allotment of performance-based shares to its employees. The allotment will be done as an employee incentive with shareholder value creation. The net worth of the share allotment to the employees is almost Rs. 5 crore od Rs. 5 face value.

This is not the first when Infoysys rewarding its employees, back in since 1994 the company provides an incentive compensation plan.

Why Infosys is allotting shares to its employees? The grants are calculated considering 7 years of the performance scale. This is named as performance-based stock ownership scheme. The scheme helps the company to recognize and reward rightly to those techies. This motivates employees to be the owner of the company through shares. Thus, they get the chance to retain the company for a longer period.
Also, it gives more value addition to their work and carry a consistent performance.