13 June 2018

Kenya Airways Staff to Get Sh1.4bn Shares Free

Kenya Airways 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."

Ethiopian Airlines begins twice-a-day Mombasa flights

Kenya

Why Matatu Fares Will Rise in September

Commuters across the country are bracing for tougher times as owners of public service vehicles mull increasing their… Read more »

See What Everyone is Watching

Copyright © 2018 The Nation. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.