Tata Digital, the e-commerce unit of the $103 billion Tata group, is wooing senior executives with long-term incentives, including stock options, to secure the loyalty of the company’s most valuable resources and attract new talent
MUMBAI : Tata Digital Pvt. Ltd, the e-commerce unit of the $103 billion Tata group, is wooing senior executives with long-term incentives, including stock options, to secure the loyalty of the company’s most valuable resources and attract new talent.
“The CXOs and a couple of levels below are getting long-term incentives (LTIs), which one can get annually for the first three to five years,” said a senior Tata executive aware of the development. “Senior executives have been told that stock options will be given to them as well once the board approval comes in.”
The incentive programme comes as India’s largest conglomerate embarks on aggressive hiring plans for Tata Digital to recruit senior executives with expertise in retail and analytics from rival e-commerce platforms, company officials and executive search firms said.
“Not often do Tata firms offer stock options, but Tata Digital is a different story. The LTIs and stock options show they are ready to attract using both the Tata brand name and money,” a second Tata executive said.
Stock options and other such incentives have become essential factors as candidates hunt for jobs, seeking bigger paycheques and better roles. High attrition levels are forcing startups, technology firms and business houses to offer more generous pay and shorten their stock options vesting period.
Although Tata Digital is yet to decide what form of stock options will be rolled out for the workforce, Mint has learnt that it will be given not just to the senior-most but many other key employees as well.
An executive at a search firm working with the Tata group said that the new hires are getting LTIs and variable bonuses.
“The mandates are in for big hires. Those who don’t get stocks now at the time of joining have been assured that once the board approves, they will be eligible for stocks,” he said on condition of anonymity.
“As a policy, we do not comment on speculation,” a Tata Digital spokesperson said in response to Mint’s queries.
Tata Digital recently launched the Tata Neu super app, which offers products from across Tata group companies. The app allows users to shop for items ranging from groceries to luxury goods to hotel bookings. It allows users to log in with just a name and mobile number and uses the device’s biometrics such as fingerprint sensors on Android phones and Face ID on iPhones to gain secure access to the app. It hosts the group’s airline Air Asia, hospitality firm Indian Hotels Co., online grocery business BigBasket, as well as retail brands Croma, Starbucks, Tata 1mg, Tata CLiQ, Tata Play and Westside.
In May 2021, Tata Digital acquired a 64.3% stake in BigBasket for ₹9,500 crore, besides acquiring e-pharmacy 1mg. It had also signed a deal to invest up to $75 million in CureFit Healthcare. The company is working on several services and tech innovations, such as an artificial intelligence-driven personal assistant, to improve the consumer experience.
Source : https://www.livemint.com/companies/news/tata-digital-woos-talent-with-long-term-incentives-esops-11651518279111.html