These retention bonuses are being given based on employees' seniority and the time spent in the organisation.
In an attempt to ensure the smooth integration of FreeCharge with Axis Bank, employees of the payments platform are being given a sixmonth retention bonus, according to people aware of the development. The letters are being handed to the employees of FreeCharge -following the announcement of its sale to private sector lender Axis Bank last week for Rs 385 crore.
Sources said the payouts were being made to ensure that employees don't quit the firm while Axis Bank takes over FreeCharge. These retention bonuses are being given based on employees' seniority and the time spent in the organisation.
Separately, Snapdeal's largest investor SoftBank has been orchestrating its merger with bigger rival Flipkart. But the process which is still under way with multiple hurdles has restricted the completion of the deal. An email sent by TOI to a spokesperson of Snapdeal did not elicit a response.
People aware of the retention bonus being handed out said that the move is linked to employees stock ownership plan (ESOPs) since FreeCharge's valuation eroded significantly over the last one year. "These ESOPs are of little or no value at all. So, getting a retention bonus for a six-month period is a sound option to go for," a person aware of the development told TOI. Snapdeal had bought FreeCharge which was valued at $400 million then.
"There is a formula based on which the payouts are being finalised. Employee performance along with seniority and the duration of association with the company are key metrics," another person aware of the development said.
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