BIFM to issue 21.8m shares to citizen employees

Mbongeni Mguni | Friday January 19, 2018 15:22

 

According to a notice to shareholders, the establishment of the Citizen Economic Empowerment scheme is intended to sweeten the remuneration package of employees and boost retention rates.

“BIFM places strong emphasis on the recruitment and retention of executives, and quality employees with talent in all areas of BIFM operations and in particular, that possess the drive, leadership skills, expertise and experience, as the company considers these to be qualities that will assist BIFM realise its strategic and long-term business goals,” the notice reads.

“The company believes that the implementation of the scheme will enable BIFM to structure a competitive remuneration package, which is designed as an additional incentive tool to reward and retain executives and quality employees.”

The scheme is also designed to “foster an ownership culture within BIFM, attract potential employees with relevant skills and motivate beneficiaries to achieve and maintain a high level of performance and contribution”.

According to the details of the proposal, 21.85 million new shares will be issued and reserved for the scheme.

The value of the shares has been determined by an external valuation exercise.

A five-person trust has been set up which will be allocated 10.1% of the shares, while the balance will be offered directly to citizen employees.

The trust, which will hold shares on behalf of employees, will also take up any shares left over after the initial subscription.

The Trust’s shares will be for future allocation.

BIFM will also provide a loan facility leveraged against the shares, to employees.

Trustees will decide on the individual allocations to employees under the scheme.

In its last results, being the six month period ended June 30, 2017, BIFM’s assets under management rose 20% to P25 billion, while operating profits were up 41% to P30.8 million.