Vedanta Makes Even Shop-Floor Workers Millionaire Shareholders Through ESOPs

Vedanta Limited is making waves in India’s corporate sector by taking an unconventional approach to employee stock ownership. While most companies reserve Employee Stock Option Plans (ESOPs) for mid- to senior-level executives, Vedanta is giving even shop-floor and mining workers a stake in the company, making them shareholders and part-owners.

₹2,500 Crore in Shares Distributed Over Five Years

Under the leadership of Anil Agarwal, Vedanta has distributed approximately ₹2,500 crore worth of shares to employees over the past five years at just ₹1 per share. This initiative has provided substantial financial benefits while also fostering a sense of ownership among employees. By making staff feel like stakeholders, the company has redefined how Indian manufacturing companies reward their workforce.

Massive Gains for Employees

As of trading this morning, Vedanta’s shares were priced at ₹675 on the BSE. Employees who received these shares at face value now hold significant unrealized gains. Under the new ESOP 2025 plan, around 5,000 employees—including fresh graduates and staff across departments—received 500 crore shares, with 1,200 of them becoming shareholders for the first time. In 2024, over 5,000 employees received 469 crore shares under the same plan.

A Model Different from Other Companies

Vedanta’s ESOP model is notably distinct from most Indian firms, which typically limit stock options to top executives. In Vedanta’s case, roughly 40% of employees benefiting from ESOPs are junior staff, including plant workers and department-level employees. Some new graduates and early-career employees may receive shares worth up to 30% of their fixed salary.

Financial Impact

Since 2022, the company has distributed over 2,500 crore shares under its ESOP program. Given that these shares were allotted at just ₹1 and now trade significantly higher, employees have collectively gained over ₹300 crore. Vedanta has been running ESOP programs for more than 20 years, demonstrating its long-term commitment to employee wealth creation.