Bombay : Tata Digital Pvt. Ltd, the $103 billion e-commerce unit of the Tata Group, is courting senior executives with long-term incentives, including stock options, to retain the most resourceful. company assets and attract new talent.
“CXOs and a few levels below receive long-term incentives (LTIs), which can be earned every year for the first three to five years,” said a senior Tata executive familiar with the development. “Senior executives have been advised that stock options will also be granted to them once board approval is received.”
The incentive package comes as India’s largest conglomerate embarks on aggressive hiring plans for Tata Digital to recruit senior executives with expertise in retail and analytics from commerce platforms rival electronics, said company officials and executive search firms.
“Tata companies don’t often offer stock options, but Tata Digital is a different story. LTIs and stock options show they are ready to attract using both the Tata brand and money,” said a second Tata executive.
Stock options and other such incentives have become key factors as job applicants search for bigger paychecks and better roles. High levels of attrition are forcing startups, tech companies, and trading houses to offer more generous compensation and shorten the vesting period for stock options.
Although Tata Digital has yet to decide what form of stock options will be rolled out for the workforce, Mint has learned that it will be granted not only to seniors, but also to many other key employees.
An executive at a research firm working with the Tata Group said new hires received varying LTIs and bonuses.
“The mandates are announced for large hirings. Those who do not get shares now upon joining have been assured that once the board approves, they will be eligible for shares,” he said on condition of anonymity.
“As a policy, we do not comment on speculation,” a Tata Digital spokesperson said in response to questions from Mint.
Tata Digital recently launched the super app Tata Neu, which features products from all Tata Group companies. The app allows users to purchase items ranging from groceries to luxury goods to hotel reservations. It allows users to log in with just a name and mobile number and uses device biometrics like fingerprint sensors on Android phones and Face ID on iPhones to gain secure access to the device. application. It is home to group airline Air Asia, hotel company Indian Hotels Co., online grocery company BigBasket, as well as retail brands Croma, Starbucks, Tata 1mg, Tata CLiQ, Tata Play and Westside.
In May 2021, Tata Digital acquired a 64.3% stake in BigBasket for ₹9,500 crore, in addition to acquiring 1mg from online pharmacy. He had also signed an agreement to invest up to $75 million in CureFit Healthcare. The company is working on several services and technological innovations, such as an artificial intelligence-based personal assistant, to improve the consumer experience.