Bursa introduces new employee, executive incentives plan

Written by The Edge Financial Daily
Friday, 12 February 2010 10:12

KUALA LUMPUR: Bursa Malaysia Bhd has proposed a 10-year share grant plan (SGP) of up to 10% of its paid-up capital for eligible employees and executives, to replace its existing employees’ share option scheme which will expire on March 2010.

In a statement yesterday, Bursa said it had undertaken a review of its employees’ remuneration structure and wished to introduce the new long-term incentive plan to replace the current scheme.

It said the new scheme was required to maintain its competitiveness as an employer and sustain long-term value creation for shareholders.

Bursa said the proposed SGP was intended to allow it to award shares in the form of a restricted share plan (RSP) award and a performance share plan (PSP) award to eligible employees and/or executives to whom an offer had been made.

“This is consistent with the company’s philosophy of attracting, retaining, motivating and rewarding selected employees and/or selected executives,” it said.

Bursa said a committee would be established by its board to implement and administer the plan and that committee may from time to time make offers to the selected employees and executives, respectively.

Bursa said in implementing the proposed SGP, the company would issue new shares to the selected employees and executives, and the reference price would be based on the fair value taking into account the market price. It added that no payment would be required to be made to the company. The committee will take into consideration, among other things, the employees’ and executives’ position, ranking, performance, contribution and potential contribution to the group.

Bursa said under the RSP Awards, the number of shares to be vested would be fixed on the grant date, while under the PSP Awards, the actual number of shares to be vested was dependent on the extent to which the performance targets and other PSP vesting conditions were fulfilled.

It said the PSP Awards was introduced to promote attainment of higher performance goals and exceptional achievements by the selected executives.

It said the award was targeted at key senior management and executives, including executive directors, in the position to drive the growth of the group through superior performance.