Sharing Wealth

Hatton National Bank is coming out with an Employee Share Ownership Plan to reward staff and give them a sense of partnership.
HNBs Chairman/CEO Rienzie T Wijetilleke says around five percent of its issued share capital will be allocated for the ESOP scheme.rn

rnThe banks Rs. 715 mn issued share capital comprises of Rs. 550 mn in voting stock and Rs. 165 mn in non-voting shares.rn

rnldblquote We have not thought out the entire process in detail, though our board has agreed on it,
dblquote Wijetilleke told Lanka Business Online.rn

rnHe said they were looking at offering it to employees based on seniority.rn

rnThe issue is still in its early stages, but the bank has hired consultants, E&Y to help structure and advice them with the legal and tax matters, said Nihal Kekulawala, the banks Deputy General Manager.rn

rnOnce finalised, the scheme requires shareholder approval at an Extraordinary General Meeting. rn

rnAnalysts say the bank may opt to create new shares or capitalise its reserves to g