Flipkart employees will receive a one-time cash payout of $700 million this month. The payout is part of the company’s separation from payments firm PhonePe.
It aims to compensate employees for the loss of value of their PhonePe stock options resulting from the separation.
The payout will go to eligible former and current employees holding ESOPs (employee stock options) in Flipkart. Each ESOP will be worth $43.67 or about Rs 3,615. The payouts are scheduled to be made by July 31, 2023.
Flipkart and PhonePe announced their separation in November 2022. While they will operate as separate entities, they will remain under the same parent company, Flipkart Group.
The $700 million ESOP buyback is the largest in India for a new-age internet firm. It signifies Flipkart’s recognition of its employees’ contribution to the company’s success. Additionally, the payout is expected to boost employee morale and help retain talent.
