Meesho announces 'ESOP for all' with its latest MeeSOP programme for staff

The SoftBank-backed internet commerce platform is enabling all employees to own company shares and participate in the growth story

Meesho, a fast-growing internet commerce platform has now introduced an annual MeeSOP programme to take this commitment forward and facilitate greater ownership for all its employees. The SoftBank-backed firm has about 1,200 employees.

Meesho has enabled wealth creation through a second ESOP (Employee stock ownership plan)  liquidity in less than a year.

Under the programme, every full-time employee, irrespective of their tenure in the company or their seniority will be able to convert a maximum of 25 per cent of their annual CTC into ESOPs, subject to a minimum of Rs 50,000. ESOPs thus granted, would be greater than 100 per cent of the CTC relinquished.

“Our repeated and periodic buybacks ensure our employees continue to grow with us. The MeeSOP programme takes this commitment further, breaking hierarchies to make every employee an owner, and providing more avenues for wealth creation,” said Vidit Aatrey, founder and CEO, Meesho. “As we hire more talent, we will continue to provide our team with the means to realize their personal and financial goals with us.”

Unlike traditional ESOP plans, the MeeSOP programme is completely inclusive, providing every employee, irrespective of their seniority, to benefit from Meesho’s rapid growth while ensuring 100 per cent of the grant is vested by the end of one year. This provides both opportunities and control to opting employees and helps them cash in on Meesho’s frequent ESOP liquidation programs. Meesho ESOPs are also one of the most robust in the startup space, with the company offering negligible strike prices, monthly vesting after the first 12 months, and non-cancellation of vested stocks even post-separation.

In October this year, Meesho announced a $5.5 million ESOP liquidity programme for all eligible current and former employees with vested stocks--its second liquidity programme in less than a year. In the same period, the company’s valuation soared more than 2x to $4.9 billion after a $550 million Series F fundraise.

On Friday, Walmart-owned digital payments firm PhonePe, also announced a buyback of employee stock options (ESOPs) worth Rs 135 crore. The Buyback offer follows a three-tier model, based on seniority. The company’s founders will not be participating in the buyback. The firm’s top leadership can sell up to 10 per cent of their vested stock. All other current employees can sell up to 25 per cent of their vested stock.

Last December, PhonePe launched its ESOPs program where it allotted ESOPs to all its 2,200 employees starting at a minimum of Rs 3.5 lakh, cumulatively worth Rs 1,500 crore.