Axis Bank has revised the vesting schedule for 5,29,947 employee stock options. The options will now vest equally over 4 years at 25% per year, commencing after one year from the grant date. This replaces the previous vesting schedule of 30%, 30%, and 40% at the end of the first, second, and third years, respectively. All other terms remain unchanged. This revision was approved following directions from the Reserve Bank of India.
ESOP Vesting Period Adjustment
Axis Bank has announced a revision to the vesting period for its employee stock option scheme. This adjustment affects the vesting schedule of 5,29,947 stock options previously granted to employees. The decision to revise the vesting period was made on October 16, 2025.
New Vesting Schedule Details
Under the revised vesting schedule, the stock options will now vest equally over a period of 4 years. This means that 25% of the options will vest each year, starting one year from the initial grant date. This change replaces the previous vesting structure, which involved a vesting schedule of 30% after one year, 30% after two years, and 40% after three years.
Implications of the Change
This adjustment to the vesting schedule provides a more gradual vesting of employee stock options, potentially influencing employee retention and aligning incentives with long-term performance. All other terms and conditions of the stock option grants, including the exercise price, remain unchanged following this revision. The changes were made based on directives received from the Reserve Bank of India and recommendations from the Nomination and Remuneration Committee. The board meeting where this was approved commenced at 9:30 am (IST) and concluded at 5:45 pm (IST).
Source: BSE
