Jan 21: Kratikal, a leading end-to-end cybersecurity solutions provider, has rolled out a company-wide Employee Stock Option Plan (ESOP), marking a deliberate step in how the cybersecurity firm views growth, ownership, and the role of its people in shaping the business. Rather than a routine incentive announcement, the move reflects Kratikal’s belief that long-term value is built when employees are treated as partners in the journey, not just participants in it.
The ESOP initiative is being expanded at a juncture when Kratikal is scaling both its product capabilities and its presence in global markets. As the company enters this phase, leadership believes that aligning ownership with accountability and outcomes becomes essential. The programme is designed to ensure that those driving the company’s progress share directly in the value they help create.
Kratikal first introduced its ESOP, titled “Kratikal Employee Stock Option Plan 2019”, to recognise and reward a small group of early contributors. The company has now entered the second phase of the programme, signalling a strategic shift from selective participation to broad-based employee ownership.
During this phase, the company can offer stock options to its permanent employees, whether working in India or abroad; to directors of the company, including whole-time directors but excluding independent directors; and to employees or directors of the company’s subsidiary or holding company, whether in India or outside India. The plan, however, excludes promoters and individuals belonging to the promoter group, as well as directors who, either individually or through their relatives or body corporates, directly or indirectly hold more than 10% of the company’s outstanding equity shares.
From a total workforce of 174 employees, 40 have opted for the ESOP, approximately 22.98 % full-time employees. To support this initiative, Kratikal created a dedicated “ESOP 2019” pool comprising 10% of its total equity, with a substantial portion reserved for future allocations.
The ESOP has been introduced to motivate employees to contribute to the growth and profitability of the company, while also strengthening employee retention to support the organisation’s long-term development. The programme aims to enable the company to attract and retain high-quality new talent, align employee interests with the company’s long-term goals and shareholder value creation, and achieve sustained growth. Additionally, it seeks to create a strong sense of ownership and participation among employees, allowing them to share in the value they help create for the company in the years to come.
Commenting on the initiative, Pavan Kushwaha, Founder & CEO, Kratikal, said, “Kratikal exists because of the people who have built it, and it is only right that they share in the value they create. Moving from employees to co-owners reflects how we see our team as long-term partners in this journey.”
He added, “What I look forward to most is the day when a liquidity event translates into real security for our people. When someone uses their ESOP gains to buy a home, support their family, or plan for the future with confidence. That will matter more than any valuation milestone.”
The ESOP rollout reinforces Kratikal’s intent to grow in a way that carries its people forward with it. As the company scales, the programme ensures that progress is shared, rewards are aligned, and success is measured not only in business outcomes, but in the stability and opportunity created for those behind them.