Wisynco execs get stock options
Manufacturing and distribution conglomerate Wisynco Group is making good on a promise to reserve a bloc of its issued shares for its employees and executive.
In a disclosure in its third-quarter financial results, Wisynco announced a “long-term incentive plan to recognise and retain key members of senior leadership so that they may continue to contribute to the success of the company”. The plan introduced on October 1 is projected to cost the company about $20 million per quarter.
Chairman William Mahfood told the Financial Gleaner that the company will identify key people in the business to ensure that they are kept happy; and part of that is the granting of the stock options.
“Prices will be locked in for a future date … so that you can incentivise the executives and senior leadership to grow the company; because if they do, when they purchase the shares in say three years at today’s prices, and the share price has grown because of their efforts, they will see the benefits from it,” Mahfood said.
The stock option programme will be tied to company targets, and will include a vesting period, in that executives will be required to work with Wisynco for a certain period in order to acquire the shares, which they will be allowed to purchase at a fixed value.
Initially, about 50 employees are to be covered by the scheme, which Mahfood said is primarily aimed at direct reports to senior executives as well as executives themselves. The first bloc of shares are to be vested in 18 months, and each year there will be a rolling stock of shares that will become available.
Mahfood says staff turnover at Wisynco is low, and that the goal is to keep it that way.
“This is one way to incentivise and motivate them not to want to leave, because the truth is that if they choose to leave then they will lose the option to purchase the shares that are not vested,” Mahfood said. The company is considering whether to expand the programme to supervisory-level staff.