Thursday, January 22, 2015

Genpact May Now Offer a Stock Option to Its Employees



There are only few BPO Companies that offers stock options to its employees and if I’m not mistaken most of them are in-house companies. Stock option plans are used by companies to draw attention to new employees and to retain old employees.

Once you have a stock or share of a company you become a part owner of the company. Having a share of the company is a great motivation for employees because; it could encourage you to work harder since being an owner you would have the desire of seeing your company grow.

Screenshot from Yahoo Finance

Genpact’s application to issue 250,000 shares to its employees has been approved by the Securities and Exchange Commission; the stocks are valued at $4.3million or Php 192 million. GENPACT told SEC that “The purpose of the purchase plans is to provide eligible employees with the opportunity to acquire a proprietary interest in the Company through periodic payroll deductions”

GENPACT also added that “These deductions will be applied at semi-annual intervals to purchase Common Shares at a discount from the then current market price,” As stated by GENPACT the employees can purchase the stocks at a discounted price, based on the data above if we divide $4.3M to 250,000 shares, a Genpact employee can purchase a stock for $17.2 or around Php768 per share which I think is a good deal because as of this writing Genpact’s stock is priced at $20.50 per share.

Screenshot from Genpact's Website

Thought it may be costly for frontline employees, I think that it’s still a good investment since it would be paid through salary deduction.

So how can an employee benefit from the stock purchase? Let’s say that Genpact offered the said scheme last year wherein the price of each share costs around $14 and I bought five shares. In this case I would shell out $70 ($14 * 5 shares), since the business is doing good the share price of Genpact is now at $20 so my initial investment of $70 is now $100. You could also earn trough dividends that the company is giving; a dividend is like a profit sharing scheme that companies give to their shareholders.

We have seen the amount of revenues that most call center companies are getting and I think it’s about time that other centers implement the stock purchase option to their employees because, it could lessen the attrition rate besides; we have been a great contributor to those revenue so why not share a piece of the pie.

Would you transfer to another company that offers a stock purchase plan to their employees? If your company offers a stock purchase plan please share through the comments section so that we could create a list.

source: Business Mirror





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