Senior ARM managers lose Sh7bn stocks cash - 4 months ago, 10 Oct 07:28
Senior ARM Cement #ticker:ARM managers, including chief executive Pradeep Paunrana, have lost a whopping Sh6.9 billion in employee stock options that are now unlikely to be cashed in with the continuing downward spiralling of the company's fortunes.
The executives, including the company’s director of strategy Navishka Paunrana and former deputy CEO Surendra Bhatia, were to buy the first batch of shares at Sh32 each and the second lot at Sh80.
The trio failed to exercise their rights when the firm’s share price was trading higher and its steady decline to lows of Sh5.5 has eliminated the profit opportunity in the stock options.
“We chose not to exercise our options even though it was our right,” Mr Paunrana, the CEO, told the Business Daily in an interview.
“We did not want to signal to fellow shareholders that it was time to sell the stock. We paid a heavy price.”
Mr Paunrana said he had personally written ...
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