In a recent court decision, a Bengaluru judge has issued an interim order preventing Swiggy from transferring or altering rights related to approximately 200 employee stock options (ESOPs) held by a former executive, Arun Cyril. Cyril, who served as an Assistant Vice President at Swiggy from 2015 until earlier this year, is contesting his termination and the company’s subsequent move to annul his vested share options.
The order, delivered on November 7, restricts Swiggy and its directors from creating any third-party interests or changes to Cyril’s vested and unexercised stock options, putting a halt to any such actions until the next hearing scheduled for November 29. Cyril alleges that his termination was unlawful and that his rightful stock options were unjustly revoked.
This legal contention over ESOP rights underscores ongoing disputes within high-growth startups where stock options have become an increasingly valued form of employee compensation and ownership.
