KUCHING: Naim Holdings Bhd plans to implement a long-term incentive plan (LTIP) via the granting of free company shares to eligible employees and executive directors based on their performance.
The leading property developer said the proposed LTIP would involve the issuance of up to 10% of the company’s issued and paid-up capital (current 250 million shares) (excluding treasury shares) at any point of time during a 10-year period.
The employees of Naim and its subsidiaries are eligible for the proposed plan.
“The proposed LTIP is intended to allow Naim to award the grant of new ordinary shares of RM1 each to be vested to the selected eligible employees for the attainment of identified performance objectives of the group as determined by a committee to be established to administer the proposed LTIP.
“The proposed LTIP comprises of restricted share units (RSU) and performance share units (PSU).
The main difference in the features of the RSU and PSU is the eligibility of the selected employees in terms of their job grades in the group and the performance targets and/or performance conditions to be met prior to the grant to the selected employees and vesting of the grant,” Naim said in a filing with Bursa Malaysia.
The company said the RSU would be awarded annually to the selected employees to be vested at no consideration over a period of at least three years on a pro-rata basis and after the fulfilment of the performance targets and/or conditions, that might be based, among others, individual performance and targets and performance rating as determined by the LTIP committee from time to time at its absolute discretion.
The PSU, on the other hand, will be awarded annually to the selected employees to be vested at no consideration at the end of a period of at least three years after the fulfilment of the performance targets and. or conditions, which might include, among others, long-term financial targets.
Eligible employees of the PSU should hold a senior management position of the group.
“The proposed LTIP will form part of the total remuneration structure as an integral part of the total reward strategy of the group. It is to complement the existing remuneration structure of the group, which, among others, include a basic salary and variable cash bonus.
“In addition, the proposed LTIP is intended to reward, retain and motivate the eligible employees whose services are vital to the businesses, continued growth and future expansion of the group,” said Naim.
Another objective is to motivate each eligible employee to optimise his/her performance standard and maintain high level contributions through greater level of commitment and ownership to the group.
Naim managing director Datuk Hasmi Hasan and deputy managing director Wong Ping Eng are eligible to be awarded the grant.
Hasmi is a also major shareholder with some 57.1 million shares or 24.1% stake in the company.
Assuming that he is granted 2.5 million new shares and are all vested, his shareholdings would be raised to 59.6 million shares after the proposed LTIP.
The company said the proposed incentives was also intended to attract prospective skilled and experienced individuals to join the group via a competitive remuneration package.
The proposed LTIP requires the approval of Naim shareholders at an extraordinary general meeting (EGM) to be convened and the greenlight of Bursa Malaysia for the listing and quotation of the new Naim shares to be issued under the proposal.