Infosys announces performance-linked stock issue

IT major Infosys has announced a unique performance-linked stock ownership programme, which people see as a bid to prevent attrition rates from further escalating.

The board of the company, in its meeting on Thursday, announced Infosys Expanded Stock Ownership Program 2019 that links long term employee incentives with shareholder value creation.

Subject to shareholder approval, the company proposed to allocate 50 million shares equating 1.15% of the company’s equity shares to a broad base of employees, which will vest on challenging performance criteria.

Many analysts tracking the sector, attribute this move as a bid to stop the rising attrition level in the company. The company, in its recent earnings call, said that it will be rolling out more employee-centric programmes as it witnessed its attrition level go up by 50 basis points to 18.3% from 17.8% in the previous quarter.