At the company’s AGM later this month, shareholders of the Housing Finance Company of Kenya (HFCK) will be asked to approve the creation of an employee share ownership plan (ESOP) unit trust. This plan will benefit from a tax incentive for ESOP’s announced in the budget speech last month and follows in the steps of Kenol and EABL as a way to motivate and retain employees.
To avoid causing friction, the ESOP shares will be bought from the stock exchange and will not dilute existing shareholdings. No mention yet if there will be a separate plan for executives.
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2 comments:
Yikes! Buying from the market will lead to speculators buying shares to "up" the price!
Unless there are clear guidelines for buying for the market I can smell insider trading!
A "connected" guy buys 1 Million shares at 25/- on Monday using HFCK's "preferred" broker knowing that HFCK will buy them on Wednesday.
HFCK's & connected's broker does the deal across the books at 27/-!
Or even if there are 2 brokers they do the deal knowing very well who the buyer & seller is!
Trustee affairs are very strict.
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