A group of former senior executives from Flipkart has escalated their concerns regarding vested employee stock ownership plans directly to the board of its parent firm, Walmart. This move intensifies the pressure on the retail giant as the Indian e-commerce company prepares for an eventual public listing. The former employees are seeking equal treatment for the equity they accumulated during their tenure, arguing that their past contributions were instrumental in building the business.
The formal appeal was sent via email on 1 October to Walmart's chairman, Gregory B Penner, and the rest of the board. The correspondence was initiated by at least eight former high-level leaders, including former chief executives, chief technology officers, and vice presidents. They argue that former staff should not face disadvantages simply because they have moved on from the company, particularly given that the schedule for the initial public offering remains highly uncertain.
At the heart of the dispute is a massive pool of wealth tied up in private equity. Reports indicate that more than 30,000 current and former workers at the e-commerce firm stand to receive a total of 38,000 crore rupees through planned buybacks of stock options. Notably, nearly half of this substantial sum is expected to be distributed to individuals who are no longer employed by the company, highlighting the scale of the financial stakes involved.
The former executives, some of whom have held their equity options since the period between 2008 and 2016, are asking the US-based parent company to offer them the same exit and liquidity options previously provided to active staff. They emphasize that these options were not external financial investments made after their departure, but were instead a core component of the compensation packages they earned during the formative and high-growth years of the startup.
Among the prominent figures signing the letter are former Myntra chief executive Mukesh Bansal, former Flipkart chief business officer Ankit Nagori, former chief product officer Mekin Maheshwari, former vice president Anuj Chowdhary, and former chief technology officers Amod Malviya and Ravi Garikipati. They have requested a formal written response from the Walmart board, stating that they expect the value generated over the years to be shared equitably among all contributors.
The push for liquidity comes at a time when the path to a public market debut is unclear. Earlier discussions regarding a private transaction valued at approximately 2 billion dollars did not materialise. Subsequently, Walmart instructed Flipkart's chief executive officer, Kalyan Krishnamurthy, to focus on achieving profitability before the company actively pursues its public listing ambitions.
In response to the developments, Walmart and Flipkart issued a joint statement confirming that a public listing remains a key component of their long-term corporate strategy. However, they maintained that the initial public offering will only proceed when the market conditions and timing are deemed appropriate, leaving the exact timeline for employee liquidity unresolved.
Key numbers
- Total estimated buyback payout: ₹38,000 crore
- Affected current and former employees: Over 30,000
- Unrealised private transaction value: $2 billion
- Earliest stock option grant year: 2008
What a board might note
- How does the board manage the retention and morale of current staff when former executives publicly challenge the equity payout structure?
- What are the financial and reputational risks for a parent company like Walmart when early-stage leaders escalate compensation disputes directly to the group board?
- Should the CFO re-evaluate the terms of historical ESOP grants from 2008 to 2016 to ensure clear liquidity guidelines exist for departed employees prior to an IPO?
- How does a mandate to prioritise profitability, as directed to CEO Kalyan Krishnamurthy, impact the valuation and timing of employee equity buybacks?
Source: Mint, 7 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
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