Mumbai : Tata Digital Pvt. Ltd., the e-commerce arm of the $103 billion Tata Group, is attracting senior executives with long-term incentives including stock options to secure the loyalty of the company’s most valuable resources and attract new talent.
A senior Tata executive aware of the development said, “CXOs and some levels below are getting long-term incentives (LTIs), which may be available annually for the first three to five years.” “Senior officials have been told that stock options will also be given to them as soon as they get the approval of the board.”
Company executives and executive search firms said the incentive program comes as India’s largest conglomerate launched an aggressive recruitment plan for Tata Digital to recruit senior executives specializing in retail and analytics from competing e-commerce platforms. does.
“Often Tata companies do not offer stock options, but Tata Digital is a different story. LTI and stock options show they are ready to attract using both the Tata brand name and money,” said a second Tata executive. .
Stock options and other such incentives have become essential factors as candidates are looking for jobs, looking for bigger paychecks and better roles. Higher attrition levels are forcing startups, technology firms and business houses to offer more generous salaries and reduce their stock option vesting periods.
While Tata Digital has yet to decide what type of stock options will be offered to the workforce, Mint has learned that it will be offered not only to the most senior but also to several other key employees.
An executive of an exploration firm working with the Tata group said the new employees are getting LTI and variable bonus.
“Mandates are for large employees. Those who are yet to get stock at the time of joining have been assured that once board approval, they will be eligible for stock,” he said on condition of anonymity .
“As a policy, we do not comment on speculation,” a Tata Digital spokesperson said in response to Mint’s queries.
Tata Digital recently launched Tata New Super App, which offers products from Tata group companies. The app allows users to shop for items ranging from groceries to luxury goods to hotel bookings. It allows users to log in with just a name and mobile number and uses the device’s biometrics such as the fingerprint sensor on Android phones and Face ID on iPhones to gain secure access to the app. It hosts group airline Air Asia, hospitality firm Indian Hotels Company, online grocery business BigBasket, as well as retail brands Croma, Starbucks, Tata 1mg, Tata CLiQ, Tata Play and Westside.
In May 2021, Tata Digital acquired 64.3% stake in BigBasket 9,500 crore, in addition to receiving e-pharmacy 1mg. It had also signed an agreement to invest up to $75 million in CureFit Healthcare. The company is working on a range of services and technological innovations to improve the consumer experience, such as personal assistants powered by artificial intelligence.