HDFC Asset Management Company has announced the approval of a new employee incentive program. The Nomination & Remuneration Committee has cleared the grant of 35,710 stock options and 34,825 performance-linked stock units (PSUs) to eligible employees of the company and its wholly owned subsidiary. This initiative aims to align long-term employee incentives with organizational growth, representing a total of 70,535 equity shares.
Grant Details and Structure
On April 16, 2026, the company’s leadership approved the issuance of equity-linked incentives under the 2025 scheme. The grants consist of two distinct components: 35,710 options issued at a grant price of ₹2,663.70 per option, and 34,825 PSUs granted at the face value of ₹5 per unit. Each instrument is convertible into one equity share of the company upon successful exercise.
Vesting Schedules
The vesting process for these incentives is tied to the completion of tenure and performance conditions. For stock options, vesting begins after the first anniversary of the grant, distributed as 10%, 20%, 30%, and 40% over four years. For PSUs, the vesting structure is more back-ended, with 0% vesting in the first two years, followed by 30% in the third year and 70% in the fourth year.
Exercise Timelines
Following the vesting period, employees have specific windows to exercise their rights. Vested options must be exercised within four years from their respective vesting dates. In contrast, performance-linked stock units require a more immediate action, with a mandatory exercise window of one year from the date of vesting.
Source: BSE
