Flipkart, one of the leading e-commerce platforms in India, has announced a one-time cash payout of US $700 million to holders of employee stock options. This move comes in the wake of the transfer of Flipkart’s ownership in digital payments unit PhonePe to its parent company, Walmart.
The payout, which is being referred to as an initiative of Flipkart, is expected to benefit more than 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 on the company’s payroll.
Sources have reportedly stated that former employees holding PhonePe shares will also be eligible for the payout. This means that even employees who have left the company will still be able to reap the benefits of this initiative.
Flipkart’s top 20 employees will be receiving more than US $200 million from this payout.
This move by Flipkart is a win-win for both the company and its employees. The company is able to transfer its ownership in PhonePe to Walmart and in turn, thousands of employees are able to benefit from a financial windfall.