This move by Flipkart is a mutually beneficial decision for both the company and its employees. The company is able to transfer its ownership in PhonePe to Walmart while thousands of employees are able to benefit from a significant financial windfall.
Flipkart, one of the biggest e-commerce platform in India, has decided to award a substantial one-time cash payout of $700 million to holders of employee stock options. This decision was triggered by the transfer of Flipkart’s ownership in digital payments unit PhonePe to its parent company, Walmart.
This initiative by Flipkart is expected to positively impact over 25,000 current and former employees of the company. Out of the total number of employees eligible for the payout, 14,000, or 70% of Flipkart’s 20,000-strong workforce, are still currently employed with the company.
Former employees who hold shares in PhonePe will also be eligible for the payout, allowing even those who have left the company to benefit from this initiative.
Flipkart’s top 20 employees will be receiving more than $200 million from this payout.