Coforge Limited , a global digital services and solutions provider, has taken a significant step to incentivize and retain its workforce by approving a new grant of performance-based stock options. The company's Nomination and Remuneration Committee has greenlit the issuance of 175,000 stock options under its Employee Stock Option Plan (ESOP) 2005, demonstrating a commitment to aligning employee interests with long-term corporate success.

Grant Details

The newly approved Grant 167 under ESOP 2005 offers the following key features:

Vesting Schedule

The vesting of these performance-based options is structured to occur over multiple fiscal years, encouraging long-term employee commitment:

Exercise Period

Employees will have the opportunity to exercise their vested options by December 31st of the respective vesting year, providing a clear timeframe for decision-making.

Strategic Implications

This move by Coforge underscores several strategic considerations:

1. Long-term Retention: By extending the performance and vesting period over five fiscal years, Coforge aims to foster long-term commitment among its key employees.

2. Performance Alignment: The vesting of options is tied to company performance, potentially motivating employees to contribute more effectively to Coforge's success.

3. Talent Attraction: Such competitive ESOP offerings may enhance Coforge's ability to attract top talent in the competitive IT services sector.

4. Value Creation: With an exercise price of ₹2 per option, employees stand to gain significant value if the company's stock price appreciates over time.

This latest ESOP grant follows a series of option grants made by Coforge throughout 2025, indicating a consistent strategy of using equity-based compensation to drive employee engagement and retention.

As the global tech industry continues to face talent shortages and high attrition rates, Coforge's proactive approach to employee stock ownership may prove crucial in maintaining a stable and motivated workforce. The success of this initiative will likely be closely watched by industry observers and competitors alike.

Coforge Limited , a global digital services and solutions provider, has reported robust financial results for the second quarter of the fiscal year while also expanding its educational initiatives.

AI Lab Inauguration at IIT (BHU), Varanasi

Coforge has inaugurated the Coforge Data & AI Lab at IIT (BHU), Varanasi under a formal MoU as part of its CSR initiative. The new facility includes:

• 980 sq. ft. lab space
• 32 Apple desktops
• Azure cloud access
• Video conferencing facilities

The lab will support four research projects:

1. AI-assisted cybersecurity vulnerability detection
2. AI-powered reading systems for the visually impaired
3. IoT-based soil health monitoring for agriculture
4. Cognitive research to enhance mathematical abilities of schoolchildren in Varanasi

CEO Sudhir Singh stated that the goal is to empower students with hands-on AI experience to solve real-world challenges, bridging academic learning with industry expertise.

Hiring Strategy in the AI Era

Coforge is adapting its hiring approach to the AI age, with Singh emphasizing curiosity as the most critical skill for new hires. The company is now prioritizing:

• Hands-on experience
• Participation in hackathons
• Practical skills over traditional certificates

Despite this new focus, Coforge continues to hire both fresh graduates and experienced professionals to support its growth trajectory.

Addressing H1B Visa Concerns

Addressing concerns about U.S. H1B visas, Singh provided context on Coforge's global workforce strategy:

• Coforge secured only 65 H1B petitions
• This is for a global workforce of 35,000 employees
• Singh described the impact as "containable"
• The company plans to mitigate any effects through on-site hiring in the U.S.

Strong Deal Momentum and Financial Performance

Coforge has reported significant progress in deal closures and financial performance:

The company noted particular strength in the European market.

Market Response

The market responded positively to Coforge's performance and strategic direction:

• Coforge shares closed 4.03% higher at Rs 1,831.00

As Coforge navigates the evolving landscape of AI and global talent acquisition, its focus on curiosity and practical skills, coupled with strong financial performance and educational initiatives, appears to be resonating with clients, investors, and academic institutions alike.