Safaricom Top Executives’ Shares Jump To $8.4Mil -Reports
The number of shares bought by Safaricom in an effort to reward its top executives has jumped to 32.2 million units with a tremendous market value of $8.4mil.
Regulatory reports for July indicate that an additional nine million shares were purchased under the operator’s Employee Performance Share Award Plan (EPSAP).
Trustees of the award scheme have been steadily purchasing more shares in the open market, rapidly increasing their share-holdings of the stock from 21.8 million units in March.
The shares will be awarded to senior executives for free as part of their incentive for meeting or exceeding their performance targets.
The company’s CEO and CFO have reportedly taken most of the stock-based compensation.
Qualifying senior staff were handed 15.5 million shares with a market value of $4mil in the year ended March.
The telecommunications operator which is listed on the Nairobi Securities Exchange (NSE), buys its own shares in the open market and then allocates them to specific staff members who eventually take ownership three years later when they are allowed to either sell the stocks or continue being share-holders.
The free shares are reported to have made Safaricom’s share-based compensation one of the most lucrative among other NSE-listed firms.
Unlike many other Employee Share Ownership Plans (ESOPS), Safaricom’s one has not diluted investors since the stocks are purchased from the existing pool in the open market.
Credit: This article originated from www.businessdailyafrica.com