Mahindra & Mahindra (M&M) has announced a one-time Employee Stock Ownership Plan (ESOP) for 23,000 employees across its group companies.
The initiative, valued between ₹400 crore and ₹500 crore, is designed to reward long-term contributions and align employee efforts with the company’s broader wealth creation goals.
This ESOP rollout spans three major subsidiaries: Mahindra & Mahindra (covering the auto and farm sectors), Mahindra Electric Automobile Ltd (MEAL), and Mahindra Last Mile Mobility. Notably, the scheme includes shop floor workers, marking a first for a large Indian conglomerate and setting a new precedent in corporate India.
Mahindra & Mahindra Restricted Stock Units for Long-Term Value Creation
The shares will be awarded in the form of Restricted Stock Units (RSUs) to employees who have completed at least 12 months of service on the company’s permanent payroll.
This structure ensures that the benefits are tied to sustained contributions and long-term engagement with the organization.
Group CEO and MD Anish Shah described the initiative as a “token of gratitude” for the workforce’s role in driving the company’s growth.
“These ESOPs are for every single person in the company. Their efforts have helped us do extremely well,” Anish said in an interview.
Recognizing Growth and Performance
The announcement follows M&M’s strong financial performance in the June 2025 quarter.
The company reported a 24% year-on-year rise in consolidated net profit, reaching ₹4,083 crore.
Revenue from operations also saw a significant increase, climbing to ₹45,529 crore from ₹37,218 crore in the same period last year.
Anish highlighted that M&M’s market capitalization has multiplied 12 times since April 2020. He attributed this growth to the collective efforts of employees across all levels.
M&M intends the ESOP scheme to reflect that value creation and share it equitably with the workforce.
A Cultural Shift in Employee Engagement
By extending stock ownership to blue-collar shop floor employees, M&M is redefining traditional boundaries in corporate compensation.
Historically, ESOPs have been reserved for senior executives and managerial staff.
This move signals a cultural shift toward more inclusive engagement. It positions every employee as a stakeholder in the company’s success.
The initiative also aims to deepen employee engagement and foster a sense of shared purpose.
It seeks to reinforce the connection between daily work and the company’s long-term goals.
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