Mahindra & Mahindra has launched a one-time Employee Stock Ownership Plan (ESOP) for its 23,000 employees. According to Group Chief Executive Officer (CEO) and Managing Director Anish Shah, the scheme was rolled out to reward employees, including factory floor workers, for their contribution to the company’s growth journey.
Shah shared in an interview with Press Trust of India (PTI) Videos that the ESPO scheme will cover three of Mahindra’s key subsidiaries – Mahindra & Mahindra (auto and farm sectors), Mahindra Electric Automobile, and Mahindra Last Mile Mobility.
The move has been hailed as groundbreaking for many, stating that this is an extremely rare, if not the first of its kind, action where a large Indian conglomerate is extending ESOPs to shop floor workers. Employees who have been a permanent part of the company for at least 12 months will be eligible to receive the shares that will be granted in the form of restricted stock units (RSUs).
“So this is something that I am very happy about and very proud about our company’s culture because these ESOPs are for every single person in the company. This is effectively a token of gratitude, because their efforts have helped us do extremely well,” Shah shared.
The CEO added that the plan is aimed towards rewarding long-time contributors and aligning employee efforts with the company’s wealth creation.
“It (₹400 crore to ₹500 crore) is a very significant amount, but as I look at it, overall, the value creation they (workers) have led is a lot more,” said Shah.
Notably, Mahindra & Mahindra reported a 24% year-on-year increase in consolidated net profit to ₹4,083 crore and a total income of ₹45,529 crore for the April-June 2025 quarter. During the April-June 2024 quarter, Mahindra & Mahindra’s consolidated net profit was at ₹3,283 crore, and the total income was at ₹37,218 crore.