OREANDA-NEWS. March 9, 2011. National Aluminium Company Limited (NALCO), India’s leading aluminium producer and exporter has added another ‘first’ to its credit. The Navratna PSU has become the first company in Public sector in India to initiate action for Employees Stock Option (ESOP), for offering its share to its employees.

This decision of Board of NALCO was endorsed in an Extraordinary General Meeting of the Company’s shareholders here on Saturday the 5th. The ESOP is planned to be issued to the executives of the company as part of payment of dues to them under Performance Related Payment (PRP), a component of revised pay package. The detailed scheme of ESOP including price will be worked out subsequently.

It may be mentioned that as per the guidelines of Dept of Public Enterprises (DPE), all CPSEs are required to formulate ESOP and 10% to 25% of the PRP should be paid as ESOP instead of in cash.

This scheme is expected to improve performance and involvement level of the employees in the Company.