Sneh Ticku, Pune
Flipkart, the e-commerce giant backed by Walmart, has initiated a significant cash payout to its staff, amounting to an estimated $700 million, following its separation from fintech firm PhonePe. The board of directors of Flipkart had previously announced the complete separation from the PhonePe business in December 2022.
As part of the compensation plan, the board decided to allocate $43.67 for each ESOP (Employee Stock Ownership Plan), including vested options for eligible current and former stakeholders and unvested options exclusively for eligible current stakeholders. The payout process was initiated on July 14, 2023, and Flipkart CEO Kalyan Krishnamurthy assured employees that they would receive individual payout details by the following week.
In an internal email obtained by PTI (Press Trust of India), Krishnamurthy expressed his delight in informing the staff about the long-awaited compensation. The company confirmed that the payout, which was linked to the separation from PhonePe, had been disbursed to employees.
Krishnamurthy took the opportunity to acknowledge the collective efforts of the staff and expressed his gratitude for their dedication and consistent performance. He recognized the employees’ commitment to the company’s purpose, which has contributed to Flipkart’s ongoing success. He further emphasized the exciting times ahead and urged the staff to continue their dedication and determination to achieve the company’s envisioned future and reach new heights together.
The separation of Flipkart and PhonePe marked a strategic move by Flipkart to streamline its operations and focus on its core e-commerce business. With this significant cash payout, Flipkart aims to reward its employees for their contributions and motivate them to propel the company’s growth across various business verticals.