Shareholders thwart Kerala-based Federal Bank's ESOP extension plan

Not enough takers for plans to extend schemes for associate firms, subsidiaries

Federal Bank’s plan to extend its employee stock option plan (ESOP) to employees of associate firms and subsidiaries has failed to garner enough support from its shareholders. A special resolution put to vote in this regard was rejected by investors — making it a rare instance for a domestic bank to suffer a defeat at the hands of its shareholders.

Two resolutions floated by the Aluva-based bank around ESOP schemes for its employees were voted unanimously in favour. However, the resolution to approve extension of ESOP 2023 and the Federal Bank Employee Stock Incentive Scheme 2023 to employees of subsidiary and