Bengaluru: Even Healthcare announced its first-ever Employee Stock Ownership Plan (ESOP) buyback within three years of launch, adding its name to the list of Indian startups that are retaining talent through stocks and helping employees build personal wealth.
Even announced its buyback worth half a million dollars for its employees at the primary valuation without any discount—a move that is uncommon in the market. This ensures Even employees get maximum earnings from their sale and do not face an “ESOP haircut” a common practice at companies. This buyback follows Even Healthcare’s successful $30 million series A funding round.
Even Healthcare ensures that every full time employee is granted ESOPs and under the same terms as founders. The company also offers guaranteed refresher benefits ensuring continuous rewards. Even’s compensation slabs and ESOP allocations are publicly visible on its careers page, so that every team member understands how compensation decisions are made.
“At Even Healthcare, we believe in creating long-term financial opportunities for our employees. This buyback is a testament to our commitment to ensuring everyone who contributes to Even’s growth benefits from it. We are proud to set a new benchmark in the industry and look forward to expanding our ESOP program further.” said Matilde Giglio, Co-founder of Even Healthcare.
ESOP-driven hiring is seeing an upward trend and influencing career decisions as peers see startup employees generate wealth from stock ownership. Many professionals are prioritising long-term equity over high fixed salaries while switching jobs. This trend is also attracting talent from multinational corporations to early stage startups.
According to a Raghav Goyal, venture capitalist based in Bengaluru, “Startups and ESOPs have started to enter mainstream vernacular, thanks to media interest and success stories of non-founders who entered the “₹100 crore ESOP club”. Employees are eyeing their next job as an investment opportunity that gives them quick, high returns vs fixed in-hand salaries. Unlike traditional companies, startups attract people with more skin in the game as business becomes personal.”
A survey by KPMG in India also found that 68% of companies have implemented or are considering implementing an Employee Stock Option Plan, with employee retention cited as the primary objective.
