Search the Internet          Tips  Sites: Finance, Investment

Adobe Systems offers $4 million in Esop

Bipin Chandran

At a time when IT companies are slashing perks, the US-based global software major Adobe Systems Inc has offered its India-based employees shares worth about $4 million as part of its employees stock option plan. This is in addition to the $10 million worth of stocks the company had given its Indian employees last November.

According to Naresh Gupta, managing director, Adobe India, the allotment of shares has already been completed with all 70 employees in India being eligible for it.

"We have realised that due to the technology slowdown at the Nasdaq, our stock has lost some of its value. That is the reason for us deciding to issue additional stocks worth $4 million to our Indian employees," Gupta said.

Explaining the company's Esop programme, Gupta said whenever a person joins the company, he or she gets a certain amount of company stock. There is also a worldwide stock allocation every year.

Adobe is also going ahead with its investments in India, contrary to other geographical markets where investments have either been put on hold or slashed.

Gupta added that the company's expansion plan in India was on track despite the US slowdown. "India is the only country where we have decided to go ahead with our capital expenditure plan. Elsewhere, we have decided to cut our investments," Gupta added.

Earlier this year, Adobe had announced $50 million investments in India in the next five years. The money is to be spent on expanding R&D work. The company is also planning on increasing the number of professionals in India to 500. "This investment is taking place as per our plans.

Besides, a new software development facility will also be functional by August 2002," Gupta said.

According to Gupta, the company will also shift more work to its Indian development facility in the coming months.

Pointing out that the Indian R&D centre has developed Adobe Acrobat for hand-held devices, Gupta said: "This is a product that we have developed here-right from the conceptualising stage to design and development. We are expecting more such work to come to India."

The Indian R&D facility of Adobe is the largest outside the US. Currently, it houses 70 professionals. Adobe's India camp focuses on three main technology areas-data interchange technology, portable document format on mobile devices and image processing and understanding.

Powered by

YOU MAY ALSO WANT TO READ:
The Rediff-Business Standard Special
The Budget 2001-2002 Special
Money
Business News

Tell us what you think of this report