@BusinessDaily

Kenya Airways staff to get Sh1.4bn shares free

4 months ago, 13 June 06:36

By: Victor Juma

Kenya Airways #ticker:KQ is set to issue 142.1 million shares currently worth Sh1.4 billion to its staff for free, reinstating its suspended employee share ownership plan (Esop).

The new shares have been created but are yet to be issued, with the Nairobi Securities Exchange-listed national carrier still working on rules to govern the scheme.

“The formation of the scheme was approved at the extraordinary general meeting of the company held on August 7, 2017. Accordingly, the directors allotted 142,164,558 shares to the scheme for zero cash consideration,” the airline, known by its international code KQ, says in its latest annual report.

“Under the scheme, eligible employees may be granted shares at the discretion of the directors for no cash consideration upon the satisfaction of various conditions as determined by the directors from time to time.”

The move means the employees will automatically book a profit once the stocks are credited in their accounts, making KQ’s one of the most generous Esops. Most other listed firms running stock-based compensation schemes require their workers to buy the shares at a discount.

Free shares are usually issued to high-performing employees, mostly managers and senior executives, who oversee teams and are in charge of crafting and implementing corporate strategies.

The KQ staff shares are held by Trustees of the Kenya Airways Employee Share Ownership Scheme 2017, “a trust set up for the purpose of incentivising certain employees through issuance of shares to employees as part of their remuneration package.”


Read More


Category: business news economy opinion lifestyle corporate markets

Suggested

1 hour ago
@BusinessDaily -
Free capital flow places Kenya ahead of South Africa

Country climbs from sixth position last year ...

Category: business markets news opinion
Now
@BusinessDaily - By: Brian Ngugi
KQ workers issue strike notice ahead of US flights

Union says looming strike will include cabin crew refusing to perform duties on the Boeing 787 Dreamliner that will be deployed to New York ...

Category: business markets news
1 hour ago
@BusinessDaily - By: Nasibo Kabale
WHO push for total lead ban to hit paint makers

Compound affects intellectual growth of over 600,000 children ...

Category: business lifestyle news opinion economy
10 hours ago, 00:06
@StandardMedia - By: Mbatau Wa Ngai
IMF scares investors

The situation is made worse when investors source the bulk of their funds from local banks. ...

Category: business news
10 hours ago, 00:00
@StandardMedia - By: Moses Michira
Kenya Power woes deepen as earning set to plummet

Suspended chief executive Ken Tarus and predecessor Ben Chumo have been charged in court over malpractices. ...

Category: business news
10 hours ago, 00:06
@StandardMedia - By: Benard Sanga
Governor Kingi, MPs call for disbandment of NLC

Kingi is the proponent for the implementation of the Truth Justice and Reconciliation Commission report on land injustices. ...

Category: business news

@BusinessDaily

Kenya Airways staff to get Sh1.4bn shares free

4 months ago, 13 June 06:36

By: Victor Juma

Kenya Airways #ticker:KQ is set to issue 142.1 million shares currently worth Sh1.4 billion to its staff for free, reinstating its suspended employee share ownership plan (Esop).

The new shares have been created but are yet to be issued, with the Nairobi Securities Exchange-listed national carrier still working on rules to govern the scheme.

“The formation of the scheme was approved at the extraordinary general meeting of the company held on August 7, 2017. Accordingly, the directors allotted 142,164,558 shares to the scheme for zero cash consideration,” the airline, known by its international code KQ, says in its latest annual report.

“Under the scheme, eligible employees may be granted shares at the discretion of the directors for no cash consideration upon the satisfaction of various conditions as determined by the directors from time to time.”

The move means the employees will automatically book a profit once the stocks are credited in their accounts, making KQ’s one of the most generous Esops. Most other listed firms running stock-based compensation schemes require their workers to buy the shares at a discount.

Free shares are usually issued to high-performing employees, mostly managers and senior executives, who oversee teams and are in charge of crafting and implementing corporate strategies.

The KQ staff shares are held by Trustees of the Kenya Airways Employee Share Ownership Scheme 2017, “a trust set up for the purpose of incentivising certain employees through issuance of shares to employees as part of their remuneration package.”


Read More

Category: business news economy opinion lifestyle corporate markets

Suggested

1 hour ago
@BusinessDaily -
Free capital flow places Kenya ahead of South Africa

Country climbs from sixth position last year ...

Category: business markets news opinion
Now
@BusinessDaily - By: Brian Ngugi
KQ workers issue strike notice ahead of US flights

Union says looming strike will include cabin crew refusing to perform duties on the Boeing 787 Dreamliner that will be deployed to New York ...

Category: business markets news
1 hour ago
@BusinessDaily - By: Nasibo Kabale
WHO push for total lead ban to hit paint makers

Compound affects intellectual growth of over 600,000 children ...

Category: business lifestyle news opinion economy
10 hours ago, 00:06
@StandardMedia - By: Mbatau Wa Ngai
IMF scares investors

The situation is made worse when investors source the bulk of their funds from local banks. ...

Category: business news
10 hours ago, 00:00
@StandardMedia - By: Moses Michira
Kenya Power woes deepen as earning set to plummet

Suspended chief executive Ken Tarus and predecessor Ben Chumo have been charged in court over malpractices. ...

Category: business news
10 hours ago, 00:06
@StandardMedia - By: Benard Sanga
Governor Kingi, MPs call for disbandment of NLC

Kingi is the proponent for the implementation of the Truth Justice and Reconciliation Commission report on land injustices. ...

Category: business news
Our App