Slide 1: Cover letter to BSE and NSE: New Stock Option Proposal
June 11, 2020 BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai – 400001. Mumbai – 400051. Scrip ID: KPITTECH Symbol: KPITTECH Scrip Code: 542651 Series: EQ Kind Attn: The Manager, Kind
Slide 2: New Stock Option Proposal
June 2020 New Stock Option Proposal 1
Slide 3: Current Stock Option Plan
Current Stock Option Plan Incentive Scheme for Top 300+ Critical Roles Current ESOP Scheme 3.8 M ESOPs issued with Exercise Price of ₹ 85 and vesting over 3 yrs. starting July 2020 Vesting Y1 : 30%, Y2 : 30%, Y3 : 40% The Options were given out of the available shares with the Employee Welfare Trust
Slide 4: Current Scenario
Current Scenario The Covid-19 outbreak has resulted To counter the current scenario in unprecedented times for the employees will end up taking a whole world resulting in a lot of salary cut to the tune of ~25% uncertainty (variable pay basis annual company performance) We are cautious about FY21 ow
Slide 5: Proposed ESOP Scheme
Proposed ESOP Scheme Modified Incentive Scheme for Top 300+ Critical Roles • Employees proposed to be Proposed ESOP Scheme covered are around 4.25% of Proposal to cancel the current ESOP the total strength of KPIT Scheme and issue ESOPs under a new • The coverage is based on Scheme at a price not le
Slide 6: Existing & New ESOP Scheme – Employee angle
Existing & New ESOP Scheme – Employee angle 3.8 M ESOPs Existing ESOP Scheme Proposed ESOP Scheme Exercise Price ₹ 85 Exercise Price* ₹ 10 The main objective of the new proposed ESOP scheme is to act as a strong incentive for the next 3 years by potentially enabling the eligible employees to get com
Slide 7: New ESOP Scheme – Accounting Impact
New ESOP Scheme – Accounting Impact Total Cash conserved on the balance sheet as a cumulative impact of variable pay and incentive reduction will be equal to approx. ₹ 500 million Considering the current market price, the proposed ESOP Scheme valuation delta will not have a major impact on the profi
Slide 8: Vesting of Stock Options
Vesting of Stock Options The proposed stock options shall vest for senior level and other employees on the basis of company and business unit performance respectively. The Nomination and Remuneration Committee (NRC) will prescribe the performance criteria as stated above for different groups of empl
Slide 9: Thus to summarize….
Thus to summarize…. The New ESOP Scheme is in lieu of the existing ESOP Scheme and there is NO DILUTION and thus no impact on EPS The New ESOP Scheme will shift the first vesting by one year and the grantees will thus not potentially be able to liquidate for one year. Plus it will provide an additio
Slide 10: Thank You
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