29 October 2024
Employees of Flipkart will receive a one-time cash payout from a $700 Mn employee stock option plan (ESOP) buyback.
The ecommerce giant has conducted several ESOP buybacks before. In 2018 it bought shares worth $500 Mn from its employees during its acquisition by Walmart for $18 Bn. Then in 2021, it bought back shares worth $85 Mn as part of its $3.6 Bn funding round.
More than 24,000 employees, including Flipkart and Myntra staff who have left will be given the cash payout based on the number of stock options they have. The payouts to each employee will still be subject to applicable withholding taxes and other tax rules in the respective countries of ESOP holders. Due to this buyback, Flipkart’s valuation will see a drop from $37.6 Bn to $33 Bn.
Employees of Flipkart will receive a one-time cash payout from a $700 Mn employee stock option plan (ESOP) buyback. The ecommerce giant has conducted several ESOP buybacks before. In 2018 it bought shares worth $500 Mn from its employees during its acquisition by Walmart for $18 Bn. Then in 2021, it bought back shares worth $85 Mn as part of its $3.6 Bn funding round. More than 24,000 employees, including Flipkart and Myntra staff who have left will be given the cash payout based on the number of stock options they have. The payouts to each employee will still be subject to applicable withholding taxes and other tax rules in the respective countries of ESOP holders. Due to this buyback, Flipkart’s valuation will see a drop from $37.6 Bn to $33 Bn.
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