Amazon, Flipkart, Snapdeal are attracting top talent by giving out 'accelerators vesting' for ESOPs

In a bid to fill in the talent crunch, top e-commerce companies like Flipkart, Snapdeal, Ola, Jabong, etc are rolling out ‘accelerators vesting’ for Employee Stock Options (ESOPs).

Through this, the employees will get an option to vest in case the company decides to sell-off or IPO. If there is no ‘accelerator vesting’ mentioned, it is a drawback for employees as they can’t sell their stock options in case the company sells out.

"We are offering an increasing number of accelerators for ESOPs for senior level hires in the past six months. Several senior-level candidates are also now demanding it in their contract," HR head of a large online retailer told ET.

Accelerated vesting is also beneficial when an employee decides to quit a company as he/she does not want to be stuck with the old firm.

“All employees at Paytm with ESOPs are eligible for accelerated vesting in the event of a liquidity event like an IPO. With the rapid valuation hikes that companies like ours have seen, the employees get an opportunity to increase their paper money exponentially/disproportionately,” Amit Sinha, people head, Paytm, told ET.