Swiggy Announces $50 Million ESOP Buyback for 2,000 Employees

Swiggy's Employee-Focused ESOP Strategy

Swiggy has taken a significant step towards employee recognition and motivation by announcing a $50 million buyback of shares from 2,000 employees, which were initially issued to them as part of the company's employee stock option plan.

This move reflects Swiggy's commitment to rewarding its workforce and creating a sense of ownership among employees.

Inclusion in the Ranks of Rewarding Companies

With this buyback announcement, Swiggy joins the ranks of new-age companies that are actively rewarding their employees this year. This includes prominent players like Flipkart, which have also recognized the importance of acknowledging employee contributions.

ESOP Liquidation Exercise and Wealth Creation Opportunities

In 2021, Swiggy declared its intention to reward employees for their performance in the coming two years, 2022 and 2023, through its employee stock option plan liquidation exercise.

Last year, the company initiated a committed ESOP liquidity program amounting to $23 million, aiming to provide employees with opportunities to create wealth through their stake in the company.

Milestones in ESOP Liquidity Program

Swiggy has already achieved its first milestone as part of its two-year ESOP liquidity program. The program aims to empower employees to benefit from the company's growth and success, aligning their interests with those of the brand.

Introducing the Build Your Own Dollar (BYOD) Program

In addition to the ESOP liquidity program, Swiggy introduced the Build Your Own Dollar (BYOD) program in 2022. Unlike the previous ESOP offerings limited to certain grades or performance-based, the BYOD program is open to all permanent employees. This inclusivity enables all employees to invest in Swiggy's ESOPs, fostering a sense of ownership and motivation to contribute to the brand's success.

Facilitating Employee Wealth Creation

The BYOD program plays a crucial role in allowing employees holding ESOPs to actively participate in creating wealth alongside the growth of Swiggy. By involving all permanent employees, the company aims to strengthen the alignment between individual contributions and the overall success of the organization.

Steady Growth in ESOP Buybacks

Over the years, Swiggy has consistently demonstrated its commitment to employee welfare and wealth creation through ESOP buybacks. In 2018, the company repurchased ESOPs worth $4 million, increasing the buyback size each year. This upward trend continued with a buyback of $9 million in 2020, and now a significant buyback of $50 million in 2023.

Conclusion

Swiggy's announcement of a $50 million ESOP buyback for 2,000 employees underscores the company's dedication to recognizing and rewarding its workforce.

The ESOP liquidation exercise and the inclusive BYOD program demonstrate Swiggy's commitment to fostering employee motivation and enabling them to share in the success of the brand.

As the company continues to prioritize its employees, it aims to strengthen its position as a leading on-demand convenience platform in the country.