Motherson Sumi Wiring Approves ESOP 2025 Scheme
Motherson Sumi Wiring India Limited's Board has approved an Employee Stock Option Scheme 2025, offering 1.55 crore options with a face value of ₹1 per equity share. The exercise price will be the market price on the grant date, with a maximum exercise period of 3 years from vesting. The scheme will be implemented through an irrevocable employee welfare trust and includes a vesting period of 1-5 years. The implementation is subject to shareholder approval.
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Motherson Sumi Wiring India Limited Board of Directors has approved a comprehensive Employee Stock Option Scheme 2025 during their meeting held on December 19. The decision, made based on recommendations from the Nomination and Remuneration Committee, marks a significant step in the company's employee incentive framework.
Key Features of ESOP 2025
The approved scheme encompasses several important parameters that define its structure and implementation:
| Parameter | Details |
|---|---|
| Total Options | 1,55,00,000 (1.55 crore) |
| Face Value | ₹1 per equity share |
| Exercise Price | Market price on grant date |
| Maximum Exercise Period | 3 years from vesting |
| Implementation Method | Irrevocable employee welfare trust |
Vesting and Exercise Framework
The scheme incorporates a structured vesting mechanism designed to align employee interests with long-term company performance. Options granted under the scheme will vest not earlier than the minimum vesting period of one year and not later than the maximum vesting period of five years from the grant date.
The exercise period for vested options will be a maximum of three years commencing from the date of each vesting. In cases of death or permanent incapacity, the Committee may allow an additional period for exercise, which shall not exceed 12 months from the original prescribed exercise period.
Pricing and Tax Implications
The exercise price per option will be determined as the market price of shares on the date of grant, with the condition that it shall not be less than the face value of the company's shares. Employees will also be liable to pay an amount equivalent to the perquisite tax value in accordance with Income Tax Act provisions and other applicable laws.
Administrative Structure
The scheme will be overseen by the Nomination and Remuneration Committee of the company, which will handle all related responsibilities including powers delegated by the Board. The scheme will be administered by the Trust to the extent that aspects of administration are delegated by the Committee as per applicable law requirements.
Regulatory Compliance and Next Steps
The ESOP 2025 has been formulated in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, and other applicable provisions of the Companies Act, 2013. All equity shares reserved under the scheme will be acquired through secondary acquisition, and shares arising from exercise of vested options will not be subject to any lock-in period.
The board meeting commenced at 10:30 hours and concluded at 11:27 hours on December 19. The scheme's implementation remains subject to shareholder approval, representing the final step in the approval process.
It's important to note that the Employee Stock Option Scheme 2025 includes 1.55 crore options and will be implemented through an employee welfare trust. The scheme is still pending shareholder approval, which is crucial for its final implementation.
Historical Stock Returns for Motherson Sumi Wiring
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.30% | +1.02% | -4.65% | +17.54% | +12.22% | +57.22% |
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