New Delhi: Vedanta Limited (NSE: VEDL), India’s leading metals, oil & gas, critical minerals, power, and technology conglomerate, has generated a cumulative financial impact of nearly ₹2,500 crores for employees through sustained Employee Stock Option (ESOP) grants in the last 5 years, underscoring one of India’s most significant broad-based wealth creation initiatives. Most recently, this includes stock options worth over ₹500 crores under ESOP 2025, empowering nearly 1,200 first-time recipients, including freshers.
Vedanta’s ESOP model is among the most inclusive in the country, covering nearly 40% of its workforce across plants, functions, and career levels. With more than 20 years of continuous ESOP administration, employee ownership has become deeply embedded in the organisation’s culture. It extends grants to freshers and early-career professionals, who are eligible for allocations amounting to nearly 30% of fixed pay over the standard three-year vesting cycle, making Vedanta one of the only conglomerates offering ESOPs to freshers.
A distinguishing feature of Vedanta’s ESOP structure is that shares are allotted at a deeply discounted price of Re 1, reinforcing Vedanta’s commitment to shared ownership and long-term value creation with minimal upfront investment. With steady share price appreciation over the years, particularly noteworthy now as Vedanta’s shares are seeing all-time highs, ESOPs have enabled thousands of employees to achieve major life milestones such as purchasing homes, funding higher education, buying their first car, supporting their families, or building long-term savings.
Neeraj Kumar, Manager, Smelting Operations at Hindustan Zinc, said, “When my family was completing the registration for our home in Patna, we needed urgent funds. At that moment, my ESOPs became our biggest support. When the options were granted three years ago, I didn’t fully realise their potential. But as Vedanta’s share price rose sharply and hit record highs, vesting them recently came at exactly the right time. It allowed me to support my family’s aspirations, and seeing my company stand by us made my father immensely proud. Very few organisations offer such inclusive wealth-creation opportunities for middle management.”
The most recent vesting cycle of ESOP 2022 has delivered more than 80% share value appreciation, generating more than ₹300 crore+ in wealth for employees, reflecting the strong linkage between organisational performance and employee reward.
This approach emanates from Vedanta Chairman Anil Agarwal’s vision of empowering employees, accelerating career progression, and creating equitable financial opportunities across the organisation, especially for young professionals and women.
For thousands of employees, ESOPs have evolved into a meaningful financial anchor, supporting emergency needs and long-term planning.
S M Rahaman Kasim, Associate GM, Quality Management at BALCO, Vedanta Aluminium shared, “Vedanta’s ESOPs have given me the confidence to fund my children’s education. One of my sons is pursuing MBBS in Russia and the other is studying in Guwahati. Vedanta ESOPs helped me fulfil their aspirations without financial stress.”
The Vedanta ESOP programme’s performance-linked structure recognises sustained contributions in areas critical to Vedanta’s future, including automation, digitalisation, AI-driven innovation, operational excellence, and sustainability.
Nilesh Bhor, Associate Manager, Finance at Sterlite Copper, said, “When my father’s car met with an accident and insurance was rejected, the repair cost was overwhelming. My ESOP savings helped us manage the situation with dignity. It was truly a lifeline for my family.”
Vedanta is reshaping compensation norms in Indian manufacturing by placing equity ownership in the hands of engineers, young professionals, plant teams, and middle management, groups traditionally excluded from equity-linked rewards in many industries. This democratisation of wealth-creation reinforces the organisation’s belief that employees should directly benefit from the value they help build.
