With a view to reward its staff and also attract and retain new talent, private sector Dhanalakshmi Bank has introduced an Employee Stock Option Plan (ESOP) for its employees.

The bank has formed an ESOP Trust and will grant six per cent of the bank’s share capital to the Trust.

“We have received our Board’s approval to grant six per cent of the bank’s equity capital to the Trust which will act as custodian and allot ESOPs as per the recommendations of the Compensation Committee of the Board,” Dhanalakshmi Bank Managing Director and CEO Amitabh Chaturvedi told PTI here on Monday.

“Most regulatory approvals have been obtained,” he added.

All employees who were on the rolls of the bank as on December 31, 2008, and a few select ones who have joined the bank after that date would be eligible for the ESOPs, Mr. Chaturvedi said.

“The logic is to reward old employees for their seniority and association with the bank. For new employees who have taken a big career call by joining the bank, in some cases by taking a salary cut, it will be a sort of compensation for them,” the Dhanalaksmi Bank chief said.

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