In a smart way of retaining talent, 10-15% of the salaries of
Reliance Industries 100 performers will be rolled out as stocks if they have been with the company for three years, sources from within the company said.
The move comes in the wake of a slew of
resignations the company received from several key people in the past few years. From Sandeep Das, who left Reliance Jio almost after two years as managing director in October 2015 to Sumit Chowdhury, the chief information officer (CIO), who was in the business leadership role for defining and setting up the Enterprise Business of Jio before he took off. SN Sharma, a part of the leadership team to drive Reliance Jio's cable distribution business, also quit.
Called the Long-Term Incentive Plan, the new plan therefore is for the high potentials in the group who earn Rs 2 crore on an average. The programme could mean stocks worth more than Rs 20-30 lakh over and above the salary.
Interestingly, Long-Term Incentive Plan are a common measure taken by companies where the attrition rate is high. More often, it is seen being implemented in information technology and ecommerce sectors.
If the new structure is implement at
RIL, the group will be the second to offer LTIPs this year after Tata Sons proposed to reward top-rung executives for loyalty with longterm incentives in the form of cash in the month of April this year.
