Edelweiss Financial Services

Thanks for bringing HDFC’s ESOS into the picture. I did not know this was an industry-wide practice. This does not make this any better in my mind though just because HDFC is doing it. I have a negative view towards financials in general as I explained in this post. I can understand ESOPs in start-ups but I did not expect to see these in mature businesses like these. I feel that a 1% dilution of market-cap if expensed in P/L under employee cost could skew valuations quite a bit. I don’t believe these incentives are required in the financial space which is already rife with enough bad incentives.

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