Aequs Limited has issued a clarification regarding the exercise price and vesting criteria for its Employee Stock Option Plan 2025 (ESOP 2025), following feedback from proxy advisors. The company has outlined a clear, market-linked pricing mechanism to ensure transparency and alignment with shareholder interests.
The exercise price for all grants under ESOP 2025 will be determined based on the last traded price of Aequs Limited’s equity shares on the recognised stock exchange with the highest trading volume on the day immediately preceding the grant date. This approach is intended to prevent arbitrary pricing and align employee incentives with long-term shareholder value creation.
Regarding vesting criteria, Aequs follows a combination of time-based and performance-based vesting. Historically, 50% of the options granted to any grantee vest over a period of five years, with 10% vesting each year. The remaining options vest based on performance criteria, such as achieving specified revenue, EBITDA, or PAT thresholds. The company allows flexibility for the Nomination and Remuneration Committee (NRC) to alter vesting conditions, provided they do not harm the grantees’ interests.
The vesting period for ESOP 2025 ranges from a minimum of one year to a maximum of seven years from the grant date. The scheme is implemented in accordance with the Companies Act, 2013, and the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, under the NRC’s supervision.
Aequs has made this clarification available on its website for shareholders’ reference.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).