BENGALURU: Engineering students in the city graduating this year will have to pick up some finance skills as companies recruiting them are offering stock options along with salaries to sweeten the deal.
While offering a stake in the company has been the trend for more experienced hires and for startups, well-established companies are following suit this year by offering shares to supplement the salary packages.
According to colleges, the value of shares on offer is between 15% and 50% of the salary package.
The candidates, too, are happy with the move as it will mean an investment even before they get their first salary. According to some of the city’s top engineering colleges, these companies were offering stocks as an additional component while some chose to make it part of the cost to company (CTC) package.
“I was surprised when I got to know that companies wanted to offer stock options. The students are pleased as it is not easy to buy shares early in their career,” said Prof. Ravishankar, Placement officer, BMS College of Engineering.
Nitya A, a computer science student of BMS College of Engineering, has received the highest package in her college. According to the information available, Nitya has been offered R70 lakh per annum, of which R27 lakh will be as salary and the rest shares. She said, “I am overwhelmed. The company has offered me almost 1,500 shares, which I cannot even imagine of buying.”
Companies recruiting engineering students in the city are offering stock options along with salaries.
Even large companies are not shying away from giving shares to graduates, said Prof. Ravishankar, Placement officer, BMS College of Engineering. Nitya A, a computer science branch student of BMS College of Engineering, has received the highest package in her college.
“Nitya was made the offer by an American company which is very famous worldwide. Even Indian companies are offering the same deal to students with a mix of salary and shares,” he said.
This year’s trend differs from the past when companies would offer joining bonuses and other incentives calculated as variable components in the CTC (cost to company). “This time, instead of these offers, shares are being given to students,” said another placement officer from another top engineering college. “It was not an easy job to get selected in placement. We had to undergo several rounds of tests, writing and viva. But, when I saw my offer letter this time where the company offered me shares, I felt worth it,” a student from the college said.
Dr Savitha Rani, Placement Officer, MS Ramaiah Institute of Technology, said, “When a student is offered a Rs 80 lakh package, then that package will include direct and indirect benefits. In the indirect benefits, companies will also have shares too.”