THE board of listed Megawide Construction Corp. has approved a stock ownership plan for eligible employees to encourage their long-term commitment.
In a stock exchange disclosure on Thursday, Megawide said its board had given the green light on Sept. 13 for the employee stock ownership plan, which is available to those who have been with the company for at least a year.
According to Megawide, it has allocated up to 10 million shares for the stock ownership plan, which is subject to the approval of regulators and the Philippine Stock Exchange.
“This is a type of performance incentive under the company’s performance management system where shares of the company may be awarded as part of the identified employees’ performance bonus,” Megawide said.
Megawide said the objectives of the plan are to “motivate key talents and encourage long-term commitment of key talents who are contributing significantly to the further success, growth, and development of the company” as well as “ to serve as a retention program for key talents.”
The company added that the plan seeks to “provide opportunity and means for the key talents to acquire certain level of equity interest in the company” and to “influence change and behavior and mindset of the eligible employees to being a part owner of the company.”
Megawide said the shares granted under the plan include 50% of the entitlement for the first year and 25% of the entitlement for both the second and third years.
“The share price is with a 10% discount on the 30-day volume-weighted average price upon issuance of the shares under the employee stock ownership plan. The voting, dividend, and transfer or assignment rights shall vest upon the issuance of the shares under the employee stock ownership plan to the employees,” Megawide said.
In the first half, Megawide logged a P363.16 million attributable net income, a reversal of the P125.68 million net loss a year ago, as total revenues rose 52.4% to P11.16 billion.
On Thursday, shares of Megawide at the local bourse rose two centavos or 0.63% to close at P3.17 apiece. — Revin Mikhael D. Ochave
