Ujjivan Small Finance Bank Clarifies Performance-Based Conditions for RSU Plan

Ujjivan Small Finance Bank Clarifies Performance-Based Conditions for RSU Plan​

Ujjivan Small Finance Bank Ltd has issued a detailed clarification to Institutional Investor Advisory Services (IiAS) concerning the Restricted Stock Units (RSU) Plan proposed in its 10th Annual General Meeting notice. The clarification addresses IiAS's concerns regarding the vesting conditions and structure of the incentive scheme for senior leadership.

The RSU Scheme-2026, which was put forward for shareholder approval, involves up to 20.0 million RSUs proposed for grant to the senior leadership team. This resolution is noted to result in a 1.0% dilution on the expanded capital base.

IiAS had previously questioned the resolution, citing concerns over the lack of clarity regarding performance criteria related to RSU vesting.

In response, Ujjivan Small Finance Bank has formally stated that the grant conditions for these RSUs, as outlined in the explanatory statement of the AGM Notice, will be strictly applied upon each vesting event subsequent to the initial grant.

The bank confirmed that the vesting of RSUs is contingent on meeting specified performance criteria set by the Bank. Specifically, it must be established that the Bank achieved not less than 105% of its budgeted revenue and profit targets, as approved by the Board.

Furthermore, Ujjivan Small Finance Bank clarified that beyond the achievement of corporate performance metrics, individual vesting is also tied to employee evaluation. To satisfy the conditions set out in the explanatory statement, an individual’s performance rating must be at least 'Meets Expectations' (ME) or above.

To ensure complete transparency for its stakeholders, Ujjivan Small Finance Bank committed that it will disclose three key elements in its forthcoming Annual Reports: the actual targets required for RSU vesting, the performance achieved against those targets to satisfy the initial vesting condition, and the individual metrics driving the final vesting.

UJJIVANSFB Stock Price Movement​

Shares of Ujjivan Small Finance Bank Limited today slipped by 2.63% after market close, settling at ₹65.14. The stock saw significant activity throughout the day, trading on volumes of 22.16 million shares while simultaneously hitting a 52-week high mark.