“By making employees owners, they get an opportunity to be beneficiaries in the long-term success of the company and realise the results of their work and dedication," he added.
The new plan is different from Infosys' 2015 plan. “Under the 2015 plan, the grants were largely vested based on time, whereas under the 2019 plan, the grants will vest strictly on performance," the company said in an exchange filing.
The Bengaluru-headquartered firm has faced high attrition levels of close to 20 per cent in recent quarters, one of the highest among its peers. For the quarter ended March 2019, the overall attrition of the IT firm was 20.4 per cent, a rise of 50 basis points over the preceding quarter. "The overall attrition remains high and we are continuing our focus on arresting the same," COO U B Pravin Rao had said during the earnings conference in April.
In 2016, the IT services firm had relaunched its employee stock option plan (ESOP) for junior to middle level management staff after a gap of 13 years. Infosys
has also given better salary
increments in past years to rein in rising attrition. Thursday’s board meeting also proposed to change the terms of appointment of CEO Parekh by changing the vesting period of equity grants to one year from the current three years.