Equity Bank Proposes an Employee Share Ownership Plan of Up To 5% Its Issued Share Capital

Equity Bank has forwarded a proposal to be discussed by shareholders during the group’s next AGM to be held on April 30^th 2019. The proposal seeks approval of an Employee Share Ownership Plan (ESOP) to issue 207.5 million shares worth Kshs8.6 billion equating to 5% of Equity Group’s total issued share capital.

If approved during the AGM, the proposal will also subject to regulatory approval by the Capital Markets Authority (CMA).

“Notice is hereby given that the 15^th AGM of Equity Group Holdings Plc will be held Tuesday April 30^th, 2019 … [under] special business to consider and if found fit, to pass a special resolution approving, subject to regulatory approval, the establishment of an employee share ownership plan (ESOP) and the issuance and allotment to the ESOP of 205,709,834 shares amounting to five per cent of the issued share capital of the company,” reads a notice sent to shareholders.

Employee Share Ownership Plans (ESOPs) are a form of employee benefit plan whose objective is to encourage employees to acquire stocks or ownership in a company in an effort to appeal to, maintain and remunerate them.

If approved by shareholders, Equity Bank’s ESOP will be the 15th of its kind among listed companies in Kenya with Britam being the latest to have its plan approved by the Capital Markets Authority.