African Bank gives 10% stake to workers in inclusive employee ownership scheme
African Bank has embarked on a new journey that empowers its own permanent workers with the launch of the iKamva Lethu (Our Future) Employee Share Ownership Scheme (ESOS) in 2024.
The bank on Wednesday said this was a symbolic move towards realigning its mission of being a bank for the people, by the people, for the betterment of all South Africans.
This initiative allocates a significant 10% ownership of African Bank Holdings Limited (ABHL) shares to its permanent employees, fostering a culture of inclusivity and shared responsibility among its workforce.
In a bid to ensure equitable access to ownership, the ESOS provides all employees—regardless of race, age, tenure, or seniority—with a stake in the company's success.
This significant decision aims not only to enhance employee retention and commitment but also to empower the workforce, giving them a vested interest in the bank's future growth and prosperity.
As part of the scheme, executive directors, prescribed officers, and the company secretary of African Bank and ABHL have also been awarded conditional ESOS units, reflecting a cohesive commitment among the bank's leadership and staff.
The awards come with an initial deemed value of R53 310, which will vest as ordinary shares upon meeting specified performance criteria set forth in the scheme.
Each conditional award is governed by rigorous retention, forfeiture, and performance conditions, ensuring that awards are vested based on the achievement of key organisational objectives. This structural framework aims to incentivise employees and align their interests with the bank's long-term goals.
According to Section 6.45 of the Debt and Specialist Securities Listings Requirements of the JSE Limited, the bank has duly received clearance for these off-market transactions, thus keeping shareholders informed and maintaining transparency regarding these pivotal moves.
As African Bank embraces this innovative approach to employee engagement, its leadership envisions a future where both the bank and its employees thrive together, laying the groundwork for a sustainable banking model aimed at serving the community.
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