Servotech's board approves ESOPs - What it is and all you need to know

Employee stock ownership plan or ESOP is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock. ESOPs are a way to encourage employees to give their best and align with the company's vision as the success of the company translates into financial rewards. 

ESOPs are considered better than salary as they offer employees equity ownership, which may grow significantly in value over time. However, the benefits depend on the company's performance and stock price appreciation.

ESOPs are given at a discounted rate to employees and are a part of the employee's CTC structure. EV charging solutions provider Servotech has recently announced ESOPs for employees.

Servotech Power Systems informed exchanges that the company's board of directors approved ESOP for eligible employees on Wednesday. 

"We hereby inform you that Nomination and Remuneration Committee of Board of Directors in its meeting held on today i.e. Wednesday, 3+ July, 2024 had inter-alia approved the grant of 20,094 (Twenty Thousand Ninety Four) options to the eligible employees of the Company as per ESOP Scheme 2022, which will be converted to equivalent no. of equity shares of the Company," the company said in an exchange filing.

Meanwhile, Servotech Power Systems has informed exchanges that its board has recommended a final dividend of 5 per cent per equity share or Re 0.05, having a face value of Rs 1 each, for the financial year 2023-2024. 

"Recommendation of Final Dividend @ 5% per equity share (Re 0.05), having face value of Rs 1 each, for the financial year 2023-2024," the company said in an exchange filing.