This archive report was first published on 18 September 2019.
On September 18, 2019, East African Breweries (EABL) executives' shares jumped to a significant value of Sh585 million, according to the company's latest annual report.
The number of shares bought by EABL for its executives and other employees has increased to 2.9 million units, with a current market value of Sh585 million.
Under the company's employee share ownership plan (Esop), EABL made net purchases of 495,965 shares in the year ended June, which is an increase from the 2.4 million units the year before.
According to the report, the shares are sold to the brewer's staff at discounts of up to 20 percent on the prevailing market price, with ordinary employees assigned the most lucrative version which gives them a 20 percent discount.
"The grant price is fixed at 80 percent of the market price at grant date," EABL says of the Esop for rank-and-file workers.
"The vesting period for the shares is three years after which an employee can exercise the option within seven years. There are no performance conditions attached to this share plan," the report adds.
However, the company's share price has dropped significantly in recent years, leaving some of the stock options in the red.
Despite this, EABL's executives, including CEO Andrew Cowan, managing director of the brewer's Kenyan subsidiary Jane Karuku, and finance director György Geiszl, exercised their rights to 55,219 shares combined that would have a current market value of Sh11 million in the year ended June.
