KUALA LUMPUR: AirAsia Group Bhd (AAGB) has provided further clarification on its proposed Share Grant Scheme (SGS) that, along with a proposed Employee Share Option Scheme (ESOS) forms a Long-Term Incentive Scheme (LTIS) for its subsidiaries and eligible employees.
In a statement today, AAGB said while both the proposed ESOS and SGS are an industry norm and practised by many other airlines and businesses the world over, the group said it took cognisance of a report by UOB Kay Hian Research dated March 22, 2021 pertaining to the matter, which it said contained misleading allegations.
"The report contains misleading allegations especially regarding the proposed SGS and questions the company’s corporate governance.
"We would therefore like to provide clarification to set the record straight,” it said.
AAGB head of people and culture PK Medappa said being always at the forefront of innovation, AirAsia has undergone a remarkable transformation throughout the pandemic from just an airline into a digital consumer and lifestyle platform and this is set to grow to form a significant half of its total business in years to come.
The company recognised the contributions made by many senior executives, managers and every Allstar staff towards making this a reality, he said.
However, he said the prolonged effects brought about by the COVID-19 pandemic have made it rather difficult for the company to continue to remain competitive in rewarding its employees in the traditional manner with appropriate cash and bonus payments.
"In fact, as part of our cost containment and cash conservation exercise, a salary sacrifice scheme ranging from 15 per cent to 100 per cent was put in place in March 2020, affecting the take-home amounts for many Allstars,” he said.
"The LTIS is a sustainable alternative for us to reward eligible employees and directors of the company.
"It is a long-term employee incentive programme that serves to reward strong employee performance, supports retention of great talent and helps us conserve cash at the same time,” he said.
The proposed LTIS is subject to the approval of the shareholders of AAGB at the company’s Extraordinary General Meeting to be convened. - Bernama