Tata Steel has drawn up an employee stock option scheme (ESOP) for permanent employees where securities would not exceed more than 10 per cent of the company's outstanding share capital.
The company will seek shareholders' approval at its forthcoming annual general meeting on July 23, to introduce the scheme.
According to the company's annual report for 1997-98, the objective of introducing the ESOP is to foster a sense of ownership and belonging amongst personnel.
"In the present competitive environment in the country and in the long-term interest of the company and its shareholders, it is necessary that the company adopts measures for attracting and retaining qualified and competent personnel," says the annual report.
The stock option scheme will be open to the permanent employees of the company and its managing and wholetime directors.
It is intended that any such stock option scheme will not involve an issue or allocation of shares or options representing more than 10 per cent of the company's outstanding subscribed and paid-up-capital at any time.
To further improve its investor services, the steel major has admitted its ordinary shares in the depository system of National Securities Depository Ltd. Investors are being offered the facility to hold the shares in electronic form and scripless trading of the same.
During the year under review Tata Steel also increased its employee separation compensation increased from Rs 78.70 crore to Rs 112.19 crore on account of additional voluntary separations during the year of 1812 employees.
