@BusinessDaily

Kenya Airways staff to get Sh1.4bn shares free

1 weeks ago, 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 - By: Kitavi Mutua And ...
Farmers staring at losses after India shuts door to ‘ndengu’

Farmers in Ukambani had staked their hopes on selling their crop in India, until Modi stopped imports of green gram. ...

Category: business lifestyle news markets opinion corporate
2 hours ago, 17:49
@BusinessDaily - By: James Kariuki
State agencies under scrutiny over fake goods

The seizures and eventual destruction of contraband goods worth Sh1.2 billion this week should illustrate Kenya’s seriousness in its quest to stem counterfeits and seal taxation loopholes. ...

Category: business lifestyle news markets opinion corporate economy
10 hours ago, 09:52
@BusinessDaily - By: Kazungu Samuel
Cross-border small traders to gain from deal

Seven Horn of Africa countries have signed an agreement to allow informal traders to operate freely across their borders. ...

Category: business lifestyle news markets opinion corporate
10 hours ago, 09:44
@BusinessDaily - By: Barack Oduor
Leaders oppose former MP’s Sony Sugar appointment

Leaders have opposed the appointment of former MP Owino Likowa to head the South Nyanza Sugar Company Board. ...

Category: business lifestyle news
10 hours ago, 09:41
@BusinessDaily - By: Barnabas Bii And ...
Audit reveals cereals board received Sh3bn toxic maize

Internal audit revealed it’s holding maize worth billions of shillings unfit for human consumption. ...

Category: business news
19 hours ago, 00:05
@StandardMedia - By: Xn Iraki
Is USA upstaging China in the Kenyan market?

Whoever can understand the Kenyan mind, or better influence it will take the Kenyan market. ...

Category: business news

@BusinessDaily

Kenya Airways staff to get Sh1.4bn shares free

1 weeks ago, 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 - By: Kitavi Mutua And ...
Farmers staring at losses after India shuts door to ‘ndengu’

Farmers in Ukambani had staked their hopes on selling their crop in India, until Modi stopped imports of green gram. ...

Category: business lifestyle news markets opinion corporate
2 hours ago, 17:49
@BusinessDaily - By: James Kariuki
State agencies under scrutiny over fake goods

The seizures and eventual destruction of contraband goods worth Sh1.2 billion this week should illustrate Kenya’s seriousness in its quest to stem counterfeits and seal taxation loopholes. ...

Category: business lifestyle news markets opinion corporate economy
10 hours ago, 09:52
@BusinessDaily - By: Kazungu Samuel
Cross-border small traders to gain from deal

Seven Horn of Africa countries have signed an agreement to allow informal traders to operate freely across their borders. ...

Category: business lifestyle news markets opinion corporate
10 hours ago, 09:44
@BusinessDaily - By: Barack Oduor
Leaders oppose former MP’s Sony Sugar appointment

Leaders have opposed the appointment of former MP Owino Likowa to head the South Nyanza Sugar Company Board. ...

Category: business lifestyle news
10 hours ago, 09:41
@BusinessDaily - By: Barnabas Bii And ...
Audit reveals cereals board received Sh3bn toxic maize

Internal audit revealed it’s holding maize worth billions of shillings unfit for human consumption. ...

Category: business news
19 hours ago, 00:05
@StandardMedia - By: Xn Iraki
Is USA upstaging China in the Kenyan market?

Whoever can understand the Kenyan mind, or better influence it will take the Kenyan market. ...

Category: business news
Our App