Air India staff to be provided ESOP option

TIL Desk/Business/New Delhi/ Air India employees may get stock option in the airline after it is privatised. The government is planning to create an employee stock pool from the 24 per cent stake it will hold in the airline. On Wednesday, the government announced it would divest 76 per cent stake in the national carrier.

“Permanent employees will be given stock option in the company, it will be given from the residual stake the government will hold in Air India,” said a senior official. This, along with an assurance of job continuity for the next one year, is the government’s step to assure the employees the official said.

According to the information memorandum released by the government, the airline has 11,214 permanent employees. Of that, around 37.6 per cent will be retiring in the next five years. The officials said the employees exercising the employee stock ownership plan (ESOP) option would be able to monetise the stock when the airline is listed.

As part of the disinvestment process, the government has made it mandatory for the successful bidder to list the airline three years after assuming management control. “After creating the ESOP pool, government holding will fall to around 20 per cent, rest will be sold off the government in parts,” the official said.