Marking the most significant change in HR at the group
MUMBAI: It’s a sign of the times. The Aditya Birla group’s four listed companies with interests predominantly in smokestack industries such as cement, textiles and non-ferrous metals has crystallised a plan to introduce stock options for its senior managers.
If the move gains shareholder approval which appears to be a formality, it will form the most significant part of a series of changes introduced in its human resources philosophy, ever since Kumar Mangalam Birla took over reins of the group about a decade ago.
The four flagship companies from the group to propose stock options for its employees are Aditya Birla Nuvo, Grasim, UltraTech and Hindalco.
The boards of the four companies met on Wednesday to clear the esop proposal.
“Esops and its variants have proved an effective employee retention tool and linking their rewards to shareholder value creation,” Dr Santrupt Mishra, who heads the corporate human resources function of the group.
“It comes at a time when the group is unfolding an ambitious growth plans and the commodity cycle is on the upswing,” Mishra added.
The move is significant as it comes at a time when the group is venturing big time into retail and telecom services.
Sources reveal that the top management has decided to reserve up to 0.5% of the equity in group companies as stock options for its employees.
Vedanta group and Holcim, its peers in sectors where the Aditya Birla group operates have already implemented the Esops in a big way.
This is part of the several initiatives including variable pay that the group has introduced to hire and retain the best talent, company officials said.
About a decade ago, when Kumar Mangalam took charge over the group after the demise of his father the late Aditya Vikram Birla , the young Birla scion started implementing several strategic moves relating to human resources in the group.
When he took over a decade ago, there was no concept of retirement among senior officials in the group.
It was a common practice for Birla group companies to have in their roster senior officials who were septuagenarians. It took awhile for the group under the stewardship of the young chairman to put forth a retirement policy.
Retention tool
The four companies to propose stock options for its employees are Aditya Birla Nuvo, Grasim, UltraTech and Hindalco
The boards of the four companies met on Wednesday to clear the proposal
The move is significant as it comes at a time when the group is venturing big time into retail and telecom services
