The letter, seen by The Economic Times, was addressed to all 11 members of Walmart’s parent company board, including chairman Gregory B Penner and Flipkart CEO Kalyan Krishnamurthy was sent earlier this month.
The former executives have asked for “fair treatment” of stock options they received 10-15 years ago and have held since. Flipkart ’s former executives want Walmart to buy their vested stock options. A group of former senior executives, including ex-CEO Mukesh Bansal, ex-CFO Sanjay Baweja and former chief business officer Ankit Nagori, has written to Walmart seeking a buyout of their vested employee stock options. Their request comes after Flipkart’s India IPO plans were deferred again, leaving former employees without a clear route to cash out their holdings.
Walmart completed another tranche of the employee stock buyback programme in July, at a reported Flipkart valuation of around $38.2 billion. However, eligible employees could liquidate only up to 5% of their vested options. Meanwhile, reports suggest Walmart is seeking a valuation of around $50 billion for Flipkart. The group includes executives, senior vice presidents and other senior employees who worked at Flipkart between 2007-08 and 2016. Flipkart Internet reported a consolidated net loss of Rs 1,494.2 crore in FY25, down 36.7% year-on-year, while total income rose 14% to Rs 20,807.4 crore, according to the report.
Because they no longer work at Flipkart, former executives argue they should not lose access to a similar opportunity simply. We are not asking for something that is unreasonable, but what is due to us. Because they are no longer on the company’s payrolls, particularly when the equity was earned during their employment and has been held for such a substantial period, “They should not be disadvantaged simply.
During that period, the company expanded beyond books into electronics, media, and lifestyle, acquired businesses including Myntra, Jabong, and eBay India, and launched PhonePe.
“We contributed our time, effort, expertise and commitment to building the business and creating the value that exists today,” the letter said. The letter says an India IPO has been deferred again, leaving former employees with “no path to liquidity”. In July, Krishnamurthy told ET that Flipkart had “any timeline right now and, to be very clear, we never have had any timeline for going public. One signatory told ET on condition of anonymity: “We do feel let down. “However, the same principle of providing liquidity to stakeholders who have remained invested in the company should reasonably extend to former employees,” the letter read. Former executives have asked Walmart for a “complete exit opportunity to all eligible former employees holding vested options” , arguing it is not simply a goodwill request. Walmart told ET that it would examine the concerns raised by the former employees. As with anything raised, we take it seriously and look into the matter,” a Walmart spokesperson said.
“We accepted these options as an important and integral part of our compensation and have continued to hold them for more than a decade. The former executives’ concern stems from a stock buyback programme that has allowed current Flipkart employees to sell part of their vested options. The letter also points to Flipkart’s founders Sachin and Binny Bansal and early investors, who have been able to realise their investments. “We appreciate the perspective of all employees-current and former-and value their feedback. The company also reiterated that an IPO remains part of its strategic roadmap and that it will proceed when the timing is right. The request comes amid continued leadership changes at Flipkart. Recent departures include Myntra CEO Nandita Sinha, along with other senior executives across strategy, talent, business finance and supply chain. Flipkart’s public-market plans remain uncertain as the company continues to focus on businesses including quick commerce, logistics, and profitability. You use AI every day. Now get your AI Quotient. Take the AIQ test.