Does Infosys give stock to employees?

Does Infosys give stock to employees?

Does Infosys give stock to employees? Yes — Infosys has a long history of granting equity-linked awards to employees. This article explains whether and how Infosys provides stock or stock-linked awards, summarizes the main programs (RSUs, PSUs, stock incentive plans and ESOP-style arrangements), and reviews eligibility, vesting, taxation, governance and notable allotments reported in company disclosures.

Overview

Infosys has used employee equity awards for decades to align employee and shareholder interests, retain talent and incentivize performance. The company’s approach combines time-based restricted stock units (RSUs), performance stock units (PSUs) and larger stock ownership programs approved by shareholders and the board. Across cycles, the structure and size of plans have been updated to reflect business priorities and governance expectations.

Historical background

Infosys introduced employee equity mechanisms in the 1990s as it grew from a startup into a publicly listed global IT services firm. Early programs focused on broad-based participation to build employee ownership.

In subsequent decades the company moved toward unit-based awards such as RSUs and PSUs and formalized global plans requiring board and shareholder approvals. As corporate compensation evolved, Infosys replaced older RSU arrangements with a formal Incentive Compensation Plan in 2015 and proposed a larger Expanded Stock Ownership Program in 2019 that attracted attention because of its scale and performance linkage.

As of September 2015, according to company disclosures, Infosys implemented a formal Incentive Compensation Plan to standardize grants across jurisdictions. As of March 2019, according to Infosys press material, the company proposed an Expanded Stock Ownership Program allocating up to about 50 million shares to employees under performance-linked conditions.

Major stock incentive programs

Infosys has relied on two principal, recent formal frameworks:

• 2015 Incentive Compensation Plan — a formalized framework replacing earlier RSU plans and setting grant mechanics and governance.
• Infosys Expanded Stock Ownership Program 2019 (the 2019 Program) — a proposed, larger program designed to allocate a material share pool with performance-linked vesting metrics.

2015 Incentive Compensation Plan

The 2015 Incentive Compensation Plan was presented as an instrument to attract, retain and motivate employees at varying levels. It replaced or superseded earlier, less standardized RSU arrangements and provided a governance structure for future grants.

Grant mechanics under the 2015 plan generally used restricted stock units (RSUs). Typical features include:

• Grants of RSUs that represent rights to receive ordinary shares on vesting.
• Time-based vesting over multi-year schedules, often graded (for example, vesting in tranches over three years), though precise schedules vary by seniority and grant.
• Board or nomination and remuneration committee approval for awards, and shareholder approvals where required by law or listing rules.

Infosys Expanded Stock Ownership Program 2019 (2019 Program)

The 2019 Program was notable for proposing a large allocation to employees: a proposed pool of up to approximately 50 million shares. The stated aim was to expand employee ownership materially and link significant portions of awards to company performance.

Key aspects of the 2019 Program included:

• Performance-linked vesting: awards under the 2019 Program were tied to specific performance metrics rather than purely time-based vesting.
• Performance metrics referenced in disclosures included relative total shareholder return (TSR) against a peer group, revenue growth with emphasis on digital services, and operating margin improvements.
• A multi-year performance measurement period: vesting depended on meeting targets over defined cycles.

As of March 2019, Infosys presented the 2019 Program details in its investor communications and regulatory filings; the program design emphasized tying a meaningful portion of compensation to long-term shareholder value creation.

Types of equity awards used by Infosys

Infosys uses several common award types; understanding each helps answer the question: does infosys give stock to employees, and in what form?

• Restricted Stock Units (RSUs) — A commitment to deliver ordinary shares (or cash equivalent) when units vest. RSUs are typically time-based: after a vesting period, the company issues shares to the employee. RSUs are the most common form of equity award at Infosys for broad population grants.
• Performance Stock Units (PSUs) — Units where vesting depends on achieving defined performance goals (for example, relative TSR or revenue/digital growth). If performance targets are met, PSUs convert into shares; if not, awards may lapse.
• Stock incentive units / stock appreciation arrangements — Structural variants that may combine features of RSUs and PSUs or define different settlement mechanics.
• Traditional ESOP-style stock options — Historically used in many firms, stock options give the right to buy shares at a preset price. Infosys’s recent emphasis has been on RSUs/PSUs and plan units rather than broad-option grants, though option-like elements have appeared in earlier eras.

Eligibility, allocation and examples of grants

Eligibility at Infosys has typically been tiered:

• Broad-based participation — Many equity awards, notably RSUs, have been made available to a wide employee population to promote ownership culture.
• Selective grants — Larger or performance-linked awards (PSUs or special incentive units) are frequently targeted to senior leadership or key talent whose decisions materially affect outcomes.

Allocation often reflects role, seniority and performance. The nomination and remuneration committee recommends grant pools and individual allocations, which the board approves and, where required, shareholders ratify.

Notable examples reported in filings and press briefings include:

• Proposed allocation of up to ~50 million shares under the 2019 Expanded Stock Ownership Program (as described in March 2019 investor materials).
• Approvals in 2022 for roughly 2.3 million stock incentive units in discrete allotments reported in regulatory filings (company approvals and stock-exchange disclosures referenced allotments in that range).
• Ongoing smaller allotments and grants in 2023–2024 reported in public filings and annual reports, often in units measured in lakhs (hundreds of thousands of shares) or in PSU/RSU units for leadership bands.

These examples show a mix of broad participation and targeted incentives. As of mid-2022 and across 2023–2024 filings, Infosys continued to disclose periodic allotments and new grant approvals consistent with its compensation framework.

Vesting, performance conditions and exercise mechanics

Vesting schedules and mechanics differ by award type:

• Time-based RSUs — Vest over a set period (commonly 2–4 years) in graded tranches or cliff vesting. On vesting, RSUs convert into ordinary shares and are issued to the employee, subject to applicable tax withholding and any company or statutory limits.
• Performance-based PSUs — Vesting depends on achieving specific performance thresholds measured over a defined performance period (often 2–4 years). Performance metrics used by Infosys have included relative TSR, revenue and digital revenue growth, and operating margin improvements.
• Settlement mechanics — When units vest, the company issues shares (or, in limited cases, cash equivalents). The allotment and issuance follow approvals, stock-exchange reporting and statutory processes including tax withholding. Some grants may be routed through an employee benefit trust for allocation and transfer.
• Exercise — For option-like awards (less common in recent cycles), employees exercise rights to acquire shares at the strike price; for RSUs/PSUs, no exercise is required — vesting triggers issuance.

Vesting may also be subject to continued employment, non-compete or clawback provisions. Performance goals are set to align awards with long-term value creation and to ensure that payouts occur only when measurable outcomes meet expectations.

Purpose and corporate rationale

Infosys states multiple reasons for equity awards:

• Align employees with shareholders by creating ownership stakes.
• Attract and retain key talent in a competitive labor market.
• Motivate long-term performance by linking compensation to measurable outcomes.
• Promote a culture of ownership, where employees share the upside of company performance.

Formal plans and performance-linked programs are also meant to strengthen governance and transparency by tying awards to objective metrics and disclosing the program structures in filings and investor communications.

Taxation and regulatory considerations

Tax treatment of employee equity awards depends on jurisdiction and award type. In India, for example, employee stock benefits are typically treated as perquisites and taxed at vesting or exercise depending on the instrument. Employees should consult tax professionals for country-specific implications because:

• RSUs commonly create a taxable perquisite at vesting equal to the market value of the shares received (subject to statutory rules), with additional capital gains tax on subsequent sale.
• PSUs taxed similarly when shares are issued or when the economic benefit is realized per local rules.
• Companies typically withhold taxes or require employees to make arrangements to meet tax liabilities at the relevant time.

Regulatory considerations include shareholder approvals for large stock pools, stock-exchange compliance for disclosures and timing (allotments and approvals are typically announced via stock-exchange filings), and adherence to insider trading and share transfer rules.

Impact on employees and company

Equity awards affect both employees and the company:

• Employees — Gain a pathway to ownership and potential upside, stronger retention incentives, and direct alignment with long-term company performance. The mix of RSUs and PSUs means some compensation is secured by tenure (time-based) while other portions depend on performance.
• Company — Achieves increased employee ownership and potential retention benefits, but may face dilution of ordinary shares. Large programs (like the 2019 proposal) can have a visible impact on outstanding share capital and are therefore disclosed and scrutinized by investors.

Overall, the intended net effect is to motivate value creation while balancing dilution through governance controls and shareholder approvals.

Criticisms, controversies and discussion points

Common critiques and public discussion points include:

• Complexity of performance metrics — PSUs tied to metrics such as relative TSR require careful peer selection and can be difficult for employees to interpret.
• Dilution concerns — Large share pools proposed for employee programs can dilute existing shareholders; companies must balance plan scale with shareholder interests.
• Timing of grants — Observers sometimes question whether grants are appropriately timed relative to performance cycles or retained employees’ tenure.
• Disclosure and clarity — Stakeholders expect clear disclosure in filings; ambiguity in plan documentation can raise governance questions.

Such critiques are typical for large listed companies using equity-based compensation and are addressed through disclosure, shareholder votes and governance oversight.

How employees typically receive and trade granted shares

After vesting, the procedural steps generally include:

1. Allotment or issuance of ordinary shares to the employee or transfer via an employee benefit trust.
2. Tax withholding or employee arrangements to meet tax obligations at vesting; companies often require employees to satisfy withholding through cash or sell-to-cover mechanisms.
3. Shares become part of the employee’s demat/registry account and, subject to any lock-in conditions, can be traded on the relevant stock exchange during open trading windows and in compliance with insider trading policies.

Infosys uses standard market mechanisms for issuance and reporting. For employees in jurisdictions that permit trading, shares are typically sold on exchanges through broker arrangements; where web3 wallet reference is necessary, Bitget Wallet is recommended for decentralized asset management, and Bitget exchange is suggested for trading equities if using a broker-integrated securities service (note: actual stock trading is subject to local brokerage availability and regulatory frameworks).

Governance and disclosure

Grant approvals are typically handled by the board and the nomination & remuneration committee and disclosed via stock-exchange filings and press releases. Infosys has publicly filed and announced multiple allotments and plan approvals. These filings provide the formal record of the size of share pools, the mechanics of awards, the directors’ and committee’s rationale, and the specific allotments made to employees.

Shareholder approvals are obtained when required by law or listing regulations, particularly for large programs that could materially increase the company’s issued share capital.

Frequently asked questions (FAQ)

Q: Who is eligible?
A: Eligibility varies. Infosys uses a tiered approach: many RSU grants are broad-based, while larger performance-linked awards are targeted at senior or high-impact employees.

Q: Are awards time- or performance-based?
A: Both. Infosys issues time-based RSUs and performance-based PSUs; the 2019 Program emphasized performance linkage for a material portion of awards.

Q: Are they taxable?
A: Yes — tax treatment depends on jurisdiction. In India, stock benefits are commonly taxed as perquisites at vesting; capital gains tax may apply on sale. Employees should consult tax advisors for specifics.

Q: How often are grants made?
A: Grants are typically made periodically (annually or as business needs dictate) and may include special allotments for strategic retention or to reward performance cycles.

Q: does infosys give stock to employees if they leave?
A: Vesting and forfeiture rules determine outcomes. Unvested RSUs/PSUs typically lapse on termination unless specific severance, retirement or change-in-control provisions apply.

Q: How can employees sell shares after vesting?
A: After shares are issued and tax obligations are satisfied, employees can sell on the exchange subject to trading windows, insider trading policies and any lock-in conditions.

Notable references and primary sources

Key source types to consult for verification include company press releases, investor relations pages and regulatory stock-exchange filings. Examples cited in public reporting include:

• Infosys press releases describing the 2019 Expanded Stock Ownership Program (program details and proposed allocation).
• Company filings and stock-exchange disclosures in 2015 relating to the adoption of the 2015 Incentive Compensation Plan and in 2022–2024 for allotments and approvals of stock incentive units.

As of March 2019, according to Infosys press materials, the company proposed the 2019 Program with a roughly 50 million-share allocation. As of mid-2022, regulatory filings disclosed approvals for stock incentive units in the order of ~2.3 million units in specified allotments. Readers should consult the company’s investor relations documents and stock-exchange filings for precise, dated details.

See also

• Employee stock ownership
• ESOP
• RSU (Restricted Stock Unit)
• PSU (Performance Stock Unit)
• Total shareholder return
• Corporate compensation governance

External links and further reading

Recommended primary materials to consult (search company press releases and stock-exchange filings for these items): Infosys investor relations releases on the 2015 Incentive Compensation Plan and the 2019 Expanded Stock Ownership Program; stock-exchange disclosures of allotments and approvals in 2022–2024; and reporting from reputable financial news outlets summarizing those filings. For trading or custody tools related to broader crypto or web3 asset management, consider Bitget Wallet and Bitget trading services where appropriate for supported products. (Note: this article does not contain external hyperlinks; consult official investor relations pages.)

Final notes and next steps

To recap the direct question: does infosys give stock to employees? Yes — Infosys grants stock-linked awards, primarily RSUs and PSUs, under formal incentive plans such as the 2015 Incentive Compensation Plan and the 2019 Expanded Stock Ownership Program. Awards vary by level, often combine time- and performance-based vesting, and are disclosed in filings and press releases.

If you are an employee or prospective hire seeking specifics about eligibility, grant sizing, vesting schedules or tax treatment, check the latest Infosys investor disclosures and speak with your HR or tax advisor. To manage or custody digital assets and integrate web3 functionality, consider Bitget Wallet; for trading services and related offerings, Bitget provides exchange services (remember that stock trading is subject to brokerage and regulatory availability in your jurisdiction).

Want to explore how equity rewards work in practice or track company filings for the latest allotments? Review Infosys investor relations documents or use your employer’s HR resources. For more on stock-based compensation concepts and practical guidance, explore related topics on this Wiki and the Bitget learning center.

Article last checked against public disclosures and company press material as of March 2019 (2019 Program announcement) and mid-2022 (reported allotments). For the most up-to-date figures and dated filings, consult Infosys investor relations and stock-exchange filings.