Mumbai: Air India has offered 97.9 crore shares of the company to its permanent employees as part of a stock option scheme - 'Employees' Share Benefit (ESB) Scheme 2022'.
An official said that around 8,000 employees stand to benefit from the scheme. An employee trust has been set up to administer it. The Tata Group took over Air India and Air India Express' control from the government on January 27, 2022. Talace, a subsidiary of Tata Sons, acquired Air India, Air India Express, and the government's 50% stake in Air India SATS Airport Services Pvt Ltd.
"In accordance with the share purchase agreement signed as part of the disinvestment process, Air India has initiated the Employee Share Benefit Scheme for eligible employees who were in service with the airline on the date of privatisation." Those who were permanent employees at the time of the takeover will be eligible to participate in the scheme where the share is offered at a price of 27 paise apiece, said the document sent to staff. It is a discount compared to the book value of 87-90 paise per share at the time of acquisition. "We will be working with the relevant employees to help them understand the long-term benefits and avail of the same," added the spokesperson.
"The company has authorised the trust to offer ESB benefits on no more than 3% of the shares of the company purchased by Talace i.e., 97,99,56,600 to the eligible employees from time to time, in one or more tranches, acquired by the trust from Talace for nil monetary consideration."
"The trust shall hold the ESB shares to provide the ESB benefit to the eligible employees upon the payment of the aggregate exercise price together with all applicable taxes and amounts. Any eligible employee retiring on or after January 27, 2022, will be deemed to be an eligible employee and will be entitled to the benefits in accordance with and subject to the terms of this scheme," read the document.
A source said Air India Express has about 300 pilots who are on permanent rolls.