Jan 28, 2011 (LBO) – Sri Lanka’s Sampath Bank said it intended to give stock options of up to three million shares to employees as a performance incentive if the bank reaches as yet undisclosed performance for 2011. The shares issued under the option plan would be 2.0 percent of the existing shares and will be issued at a discount of 10 percent from the price during the last week of January 2011.
Though several Sri Lankan firms have employee share ownership plans, in Sri Lanka is it not usual to link them to a firms performance. In developed markets, stock options are common as part of executive compensation.
Sri Lanka’s Sampath Bank has been aggressively expanding after coming under the leadership of two former executives of Commercial Bank of Ceylon. The stock options could be exercised for three years from April 2012.