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Saregama to introduce ESOP

KOLKATA: Saregama India Ltd is planning to introduce an employees stock option plan (ESOP) for its managers. This is part of a series of HR initiatives the music company has lined up to ensure a high degree of performance-orientation among its employees while giving them a sense of ownership.

A company release said that a `compensation committee', headed by Mr J.N. Sapru and comprising Mr. Sanjiv Goenka and Mr P.K. Mohapatra, all SIL directors, had put their seal of approval to this scheme. It will now be placed before the board of directors and subsequently before the minority shareholders at the AGM.

The scheme aims to attract and retain the best available talent in the entertainment industry and provide employees with a reward mechanism linked to the company's performance. The scheme comprises two parts: Fixed options and variable options.

Pointing out that the scheme provides wealth creation opportunities to its managers which will, in time, supplement the normal compensation given to them, sources said that, to start with, the option is likely to be offered only to senior managers. ``The details are to be worked out,'' they said.

The compensation committee shall have the full power and authority to decide on the eligibility of the recipients and the quantum of options to be granted. Among other things, it has been decided that the broad parameters for grant of options shall be th e individual's performance and potential. -- Our Bureau