Edtech major Unacademy has put a hold on the proposed amendments to its 2018 employee stock option scheme (ESOP 2018) after a strong pushback from former employees over the tax and liquidity implications of exercising their options at a sharply lower valuation.
In an official email to the ESOP holders, the company stated that it is “putting in abeyance” on the proposed amendments to the ESOP 2018 policy until further notice
The email further added that some corporate authorisations will be required to give effect to the pause and that the scheme may be revised later at an “appropriate time” while balancing the interests of employees and other stakeholders, reported Moneycontrol
The development comes as a result of the concerns raised by the employees about tax liabilities on illiquid shares
This comes at a time when the company is going through uncertainties, including an acquisition discussion with upGrad.
Recently, Paytm also rolled out 1,23,908 fresh ESOPS under its ESOP Scheme 2019. The total value of these stocks stands at about Rs. 16.6 Cr, given the last closing of Paytm being at Rs. 1,340.70 per share on the BSE. Following the announcement, the share price jumped 1.2% to Rs. 1,357.35 on BSE
