Maybank proposes granting employees up to 3.5% of issued shares
Uma Devi
MALAYAN Banking Berhad (Maybank) on Friday (Mar 3) said it has proposed to establish and implement an employees’ share grant plan (ESGP) of up to 3.5 per cent of issued shares to eligible employees, including executive directors.
The plan, however, excludes treasury shares.
The company said the plan will cover Maybank and its branches and subsidiaries in Malaysia and overseas, excluding dormant subsidiaries.
Employees fulfilling the relevant service objectives and performance targets that have been set by the nomination and remuneration committee shall be included in such ESGP grant, said Maybank.
The move is intended to retain and motivate key talents, as well as to attract prospective skilled and experienced employees to the group by making its total compensation package more competitive, Maybank said.
Other aims of the plan include driving individual key performance indicators and motivating employees, rewarding and retaining eligible employees by giving recognition to their contributions, as well as allowing eligible employees to take part in the bank’s profitability.
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These employees can also eventually realise capital gains arising from any appreciation in the value of these shares, said Maybank.
“Maybank strives to align its total rewards strategy with that of its long-term objectives of creating sustainable value enhancement for its shareholders,” the company said.
Maybank added that it constantly reviews its employees’ total remuneration structure as part of its total reward strategy.
The proposed ESGP will be valid for a period of 10 years. The bank may, from time to time, enter into agreements with employees to grant the ESGP shares at “future dates”, Maybank said.
The number of such shares to be vested to the eligible employees will depend on their achievement of individual key performance indicators, and meeting the overall performance targets of the group.
The ESGP shares on the vesting dates shall be settled by way of issuance and allotment of new Maybank shares, or by way of cash settlement as determined by the nominating and remuneration committee.
In the case of cash settlement, the reference price used to determine the amount to be paid to the employees will be based on the market value of the ESGP shares after taking into account, among others, the volume weighted average market price of Maybank’s shares for the five market days immediately before the vesting date.
The group said the extent of the effect of the proposed ESGP on the group’s earnings and earnings per share figures cannot be determined at this juncture, as it would depend on the fair value of the new Maybank shares to be issued as at the respective ESGP grant dates.
In the case of issuance of new Maybank shares, the proposed ESGP will not have any immediate effect on the consolidated net assets, net assets per share or gearing level of the group until new shares are issued in connection with the vesting of the ESGP shares.
For settlement by cash, the ESGP will reduce the consolidated net assets and net assets per share of the group, and raise its gearing level.
The dilution to the substantial shareholders’ shareholdings in Maybank will also depend on the number of new shares issued and allotted to the participants, said the bank.
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