KenolKobil last year provided the sum to cater for qualified employees who were given the right to buy shares in the company.
If exercised in full, the options could see employees including executives acquire 30.8 million shares equivalent to a two per cent stake based on the oil marketer’s share price of Sh12.5 on Friday.
By owning stock in their company, workers including executives are exposed to the risk and rewards of their performance.
Oil marketer KenolKobil #ticker:KENO has offered its staff an opportunity to acquire shares valued at Sh386.1 million through its employee share ownership plan (ESOP).
The Nairobi Securities Exchange-listed firm last year provided the sum to cater for qualified employees who were given the right to buy shares in the company, according to the company’s latest annual report.
If exercised in full, the options could see employees including executives acquire 30.8 million shares equivalent to a two per cent stake based on the oil marketer’s share price of Sh12.5 on Friday.
“On vesting, the trust allocates the shares to the eligible individuals with adjustments made to the ESOP reserve. When the options are exercised, the entity issues new shares,” the oil marketer said in the report.
The ESOP reserve rose from Sh50.7 million in 2015, with the latest provision ranking as one of the highest in recent years.
KenolKobil’s volume of issued ordinary shares has however remained unchanged at 1.4 billion units, indicating that employees have snubbed previous share-based compensation schemes.
KenolKobil’s chief executive David Ohana declined to comment on the latest ESOP offer.
Under the scheme, executives and other senior managers are entitled to acquire a predetermined number of shares at a predetermined price, subject to fulfilment of the vesting conditions.
Stock-based compensation schemes gained traction from the early 2000s as a means of aligning the interests of employees with those of shareholders.
By owning stock in their company, workers including executives are exposed to the risk and rewards of their performance.
Firms running ESOPs have traditionally offered staff their shares at a discount to the prevailing market price to encourage their participation in the schemes.
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