Britam and the Nairobi Securities Exchange (NSE) say in their respective annual general meetings notices that they will be seeking shareholder nod to establish the employee share plans.
NSE says it will be allotting 12.9 million shares to the scheme, equivalent to five per cent of the firm’s issued share capital.
Britam is yet to disclose the number of shares going into its Esop, with its plan still in the initial stages.
Insurance firm Britam #ticker:BRIT and the Nairobi Securities Exchange (NSE) #ticker:NSE have announced plans to set up employee share ownership schemes.
The two firms say in their respective annual general meetings notices that they will be seeking shareholder nod to establish the employee share plans, with NSE saying it will be allotting 12.9 million shares to the scheme, equivalent to five per cent of the firm’s issued share capital.
“Subject to approval by the CMA, the shareholders of the company hereby approve the creation of an employee share ownership plan unit trust to be called the NSE ESOP Unit Trust… that the shareholders of the company hereby authorise the board to allot and finance from the resources of the company up to 12.9 million ordinary shares to the Esop…,” reads the NSE AGM resolutions, which the shareholders will be asked to approve on May 31.
Britam is yet to disclose the number of shares going into its Esop, with its plan still in the initial stages. The insurer is seeking approval to develop the trust deed for its Esop, which will thereafter be submitted to the CMA.
If approved, the two share plans will bring the number of active Esop plans as licenced by the CMA to 14, all of which are by listed firms.
Other firms with Esops include ARM Cement #ticker:ARM, EABL #ticker:EABL, Equity Bank #ticker:EQTY, HF #ticker:HFCK, I&M Bank #ticker:I&M, KCB #ticker:KCB, KenolKobil #ticker:KENO, Kenya Airways #ticker:KQ, Safaricom #ticker:SCOM, ScanGroup #ticker:SCAN, Car&General #ticker:C&G and Standard Group #ticker:SGL. Such schemes align employees’ interests with those of shareholders.
By owning stock in the company, workers are exposed to the upside and downside of their performance and decisions.
Some of these plans, however, only allow employees to take up the benefit after working for a period of time, tying the benefit to loyalty.
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