Tata Motors to issue Performance Shares to its own employees and the employees of its subsidiaries under the long-term incentive scheme.
The Board members at its meeting held on 23 June 2021 has approved the Issue of Performance Shares and/or Options to the eligible employees of the Company and its subsidiary companies as per the SEBI (Share Based Employee Benefits) Regulations, 2015 not exceeding 0.25% of the Company’s issued share capital.
The move is subject to the approval of the shareholders at the ensuing Annual General Meeting of Tata Motors.
Performance shares are a form of incentive awarded to employees if certain performance objectives are achieved. These are similar to employee stock options (ESOP) but are considered as a reward, unlike ESOP which is part of the compensation package.
For FY21, Tata Motors consolidated net loss widened to Rs 13,395 crore from Rs 11,975 crore loss posted in FY20. At the stand-alone level, the company managed to reduce its net loss to Rs 2,395 crore for FY21 as against Rs 7,289 crore posted in FY20.
