British American Tobacco proposal to buy back shares not an option: ITC

British American Tobacco (BAT), which turned down ITC’s proposal for issuing employee stock option schemes (ESOPs), has suggested that the diversified conglomerate consider buying shares in the market for the purpose.

“We support plans to incentivise executives and employees of ITC with company shares as long as the incentivisation is not done in a manner which is dilutive for ITC shareholders. This could include buying shares in the market for issuing ESOPs, which a number of other large and well-respected Indian companies have done in recent years,” a BAT spokesperson said.

However, a buyback for ESOP was not an option for ITC. “The buyback of shares by the company to grant options to employees is not feasible as unlike the UK, regulations in India do not allow companies to hold shares bought back as treasury shares, which can be distributed to employees,” a ITC spokesperson said.