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Companies Act updates unlock RSUs and SARs for smarter executive pay
Business
Published on 24 April 2026
Now firms can reward talent beyond ESOP playbooks
The Finance Minister has updated the Companies Act to modernise executive pay rules. Companies can now recognise employee reward instruments like restricted stock units and stock appreciation rights, moving beyond the traditional ESOP model. The shift is designed to give firms more flexibility to attract and retain talent, while aligning pay structures with current market practices.
- Companies Act rules for executive pay have been updated
- RSUs and SARs are now officially recognised for employee rewards
- Firms can move beyond traditional ESOP frameworks
- New flexibility aims to better attract and retain talent
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times