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EIH board moots stock option for employees

Our Bureau

CALCUTTA, July 10

THE board of EIH Ltd (The Oberoi Group) has recommended introduction of an employee stock option programme (ESOP). There will be a compensation committee consisting of a majority of independent directors for the implementation and administration of the s cheme.

As per the salient features of the scheme, given in the directors' report for 1999-2000, the total number of options that may be granted will be up to five per cent of the issued equity shares as on March 31, 2000, i.e., five per cent of the 52,392,898 e quity shares. Vesting of options, which may occur in tranches, will commence not before a period of one year from the date of grant and may extend up to two years from the date of grant.

The exercise price for the grant of options will be computed at a discount of 10 per cent on the closing price of the company's equity shares quoted at the stock exchange, where there is highest trading volume on the date of the grant of option.

The scheme will include grant and issue of warrant (whether attached to a security or not) with an option exercisable by the holders thereof to subscribe for equity shares, linked securities, ADRs, GDRs and/or any other instrument as may be allowed from time to time. A special resolution on ESOP would be moved for shareholders' approval at its forthcoming AGM.