How Tata Group companies are unlocking power of equity-based incentives to attract & retain talent
In a significant break with tradition, five listed companies of the Tata Group, including Titan and Tata Power, recently introduced equity-based compensation for senior executives, a move designed to attract, incentivise and retain senior talent in a hyper-competitive market. Top company executives confirmed that with the 155-year-old conglomerate focusing on building a performance-linked culture to boost productivity and grow faster, group companies have begun including share-based compensation as part of pay packages to match competition and motivate senior-level employees.
The race to hire and retain employees, particularly when competing with new-age startups and tech companies, could be another reason to make these part of compensation. “A lot of these companies are trying to hire talent from the new-age industry ecosystem where Esops are a very acknowledged feature and employees are typically part of equity stakeholders, overall,” says Anshuman Das, CEO, Longhouse Consulting. If a company does not offer equity, it could create the perception that it is very traditional, he says.