Equity Bank last week forced its staff to buy up shares in the Bank. While they were awarded bonuses for the Bank’s good performance so far, they were then told that bonus and portions of their salaries would be channelled to a mandatory share purchase program. But employees are not being told how many shares they are buying or at what price.
The Bank will hold an extraordinary general meeting next week on August 10th with shareholders.
3 comments:
Good news is that the staff will have shares coz they can build welath... I like that idea... similar to ESOPs that USA firms have...
Bad news - the employees should know what price/cost
ESOP's are voluntary - this one is not
Actually not all (US) ESOPs are voluntary. Contributions are made by the employer & are pre-tax BUT not taxable.
Essentially, the employees get a "free" ride that is supposed to give them pride in the company. Basically a morale booster...
I do not know the intricate details on Equity Bank though...
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