D2C(Direct to Consumer) personal care brand Pilgrim has announced its first-ever ESOP scheme. It has earmarked 10% of its shares to the ESOP pool for 100% of its employees, it said in a statement.
Significance of This first ESOP scheme:
About 30 employees who have spent a year in the company will be able to benefit from this scheme. With this announcement, Pilgrim aims to acknowledge and reward the efforts of the employees who’ve led the brand’s growth over the last 3.5 years, along with driving wealth creation.
With a strong focus on employee well-being and hence benefits, Pilgrim has seen its employee-benefit-centric expenses grow 2.5x in the last 12 months. It has also doubled its employee strength in the same time period.
What Is an Employee Stock Ownership Plan (ESOP):
An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock. ESOPs give the sponsoring company—the selling shareholder—and participants various tax benefits, making them qualified plans, and are often used by employers as a corporate finance strategy to align the interests of their employees with those of their shareholders.
Founded in 2019, Pilgrim says it is targeting 3x the current run rate in 2023. Pilgrim aims to empower employees to be a part of the company’s growth journey with the ESOP scheme and experience professional as well as financial growth opportunities. It aims to instill a sense of pride and ownership in brand building and growth. The ESOP scheme will be offered to the employees at face value and over and above their salaries.