Employee Stock Option Plans (ESOPs) have been utilized by many successful companies across the world. A Research on the relation between ESOPs and productivity has attracted considerable attention in this study. This study analyzed the ESOP utilized by L&T and Hindustan Construction Company (HCC) operating in the construction business. The results from both the companies shall be analyzed to detail out the ESOPs as a powerful tool for achieving corporate efficiency and growth. Studying and analyzing data from the annual reports of both L&T and HCC, it was claimed that ESOPs play a positive role in enhancing employee productivity.

KEYWORDS: Employee Stock Option Scheme, Employee Productivity, Indian Infrastructure sector