Trouble with stock options: ESOPs draw institutional investors' ire

Several resolutions on stock option grant see overwhelming 'against' votes by institutional investors

India Inc and institutional shareholders are increasingly finding it difficult to be on the same page when it comes to the issuance of employee stock option plans (ESOPs). In recent months, several resolutions floated by listed companies on the issuance of stock options to their staffers have seen pushback from institutional investors.

Companies — such as Asian Paints, Mindtree and Khadim — have seen between 56 per cent and 100 per cent "against" vote by institutional investors on such resolutions. But none of these resolutions has got defeated, thanks to "for" votes from promoters and other shareholders.

“There is a disconnect in