FMCG firms are lev­eraging the good performance of th­eir stock prices by once ag­ain issuing Employee Stock Options (Esops) to attract and retain top talent.

In the last one year, BSE FMCG index has risen 18.03 per cent while BSE Sensex fell 9.79 per cent.

Employees are making use of the bullish sentiment to exercise more options in the current year. P Ganesh, executive vice-president (finance and commercial) and company secretary at Godrej Consumer Products (GCPL), told Financial Chronicle that Esops are definitely gaining momentum as an instrument of employee remuneration. "It is a good way of sharing wealth,” he sad.

Harshu Ghate, MD, ES­OPDirect, said the employee demand and arresting attrition are the major drivers for ES­OPs in FMCG companies. "It's also giving better returns now.” In the past, the employees may not have exercised options fearing that they may not have got good returns, added Ghate.

“ESOP strategy is evolving with time. FMCG companies are catching up with the concepts of ESOPs. It is aligned with the interest of employees,” said HK Press, an independent consumer consultant.

Milind Sarawate, group CFO and chief human resource officer, Marico, said, “Since FMCG industry is st­able, employees expect good returns through ESOPs. It pr­omises certain income than explosive earnings.”

Dabur India has issued 1,121,662 shares worth Rs 11.77 crore in the current financial year. ITC has issued 23, 89,300 equity shares worth Rs 48.59 crore.

K Sudarshan, managing partner- India, EMA Partne­rs, an executive search firm said the ESOPs also create exit barriers for the employees. "The companies also want to create long-term we­alth for their employees.”

The FMCG companies’ senior officials still get astronomical returns from ES­OPs. Under performance share plan 2011 of HUL, Nitin Paranjpe, MD and CEO, was awarded 27,140 shares valued at Rs 75 lakh and Sridhar Ramamurthy, executive director (finance and IT) and CFO was awarded 16,380 shares.