To motivate its hardworking employees, Tata Motors is planning to offer stock options to atleast 200 top-level executives.
The company is seeing this move as as way of investing in talent and it is a part of its new turnaround strategy.
Being a rarity in automotive field, this initiative is one-of-the-first of its kind in the company.
The stock options will be assigned on the basis of three categories-gain in market share, EBIT margin improvement and free cashflow as a percentage of revenue.
The employees will be granted stocks starting in the second quarter of the current financial year at an average of the share prices of the preceding 90 days.
Tata Motors has said that it is investing significant resources in the future of the company’s top talent, backed up with leadership development and progression and promotion opportunities, to build a satisfying and engaging career for all.
The board approved increments and bonus that will reflect the strong performance. The second phase of its strategy deals with sustaining the strong performance of the commercial vehicle business and making the passenger vehicle division profitable.