Mobile Premier League, an Indian based start-up company has announced that the company has changed up their compensation and wage structure as they look to break even and earn profits as soon as possible.
Mobile Premier League (MPL) is a Bangalore based start-up company that focuses on esports, fantasy sports and gaming. The company was founded just under 4 years ago back in 2018 and its head office is situated in Bangalore.
This news comes just a few weeks after the company was forced to down size their work force by a strength of 100. They even closed down their international operations in Indonesia due to the long lack of funds flowing into Indian start-up companies.
The purge that took place in the company has been very difficult on them and now they look to retain the key staff and the pool of talent that they have employed which is the main reason for them to rework their compensation.
The new system includes a reward based system where employees and teams will receive remuneration and benefits for their achievements. Their employee stock option plan has also been revamped as their vesting window has been changed from an annual cycle to a monthly one. They have also mixed their fixed and variable income.
Changing up the employee stock option plan is slowly gaining traction as companies are looking to keep their employees and the talent that they have fostered with them. Business 2 business start-up, Udaan, recently also did this as they switched their vesting window to every 3 months instead of annually. By reducing the vesting period, employees can buy the company’s stock much earlier than the original time period.
This could however be an issue as the valuation of start-up companies could drop as ESOPs become more available. Start-up companies will find it difficult to raise the necessary funds if their valuation gets lowered due to the ESOPs. But it seems like companies have no other option and are doing what they can to keep as much employees as they can and especially make sure that their most valuable people stay at the company.
MPL attained the status of the Unicorn just around 10 months ago back in September, 2021 and were last valued at $ 2.3 billion USD.
Experts are now saying that many companies will be following MPL and will be revamping their pay structure and ESOP terms and conditions so that they can continue their regular operations.