Nearly 2,000 VIB employees are about to be awarded 11 million shares of the bank, equivalent to VND230 billion in market value.
Vietnam International Bank (VIB) has just announced its policy of issuing bonus shares to employees.
This bank used more than VND110 billion from its equity to issue bonus shares to employees (ESOP), equivalent to a total of 11 million shares. If calculated based on the price range of VND21,000 per VIB share maintained since the beginning of the year, these bonus shares are worth more than VND230 billion.
The list of VIB employees receiving bonus shares includes 1,918 people. The number of shares each person receives ranges from 1,000 to 600,000 shares, depending on their position and work performance.
Specifically, VIB’s executive board consists of 11 employees, receiving a total of 1.78 million shares.
The person who received the most bonus, nearly 620,000 shares (at market price, about 13 billion VND) was Mr. Le Quang Trung, currently the Director of the bank’s Capital Department.
Next is General Director Han Ngoc Vu with 145,000 shares; Deputy General Director Ho Van Long with more than 144,000 shares; Human Resources Director Tran Tuan Minh with more than 144,000 shares. Other members of the executive board were awarded 76,700 shares to 137,000 shares.
The next 30 people each received from 15,000 to 55,700 shares. The remaining 1,877 VIB employees received from 1,000 to nearly 20,000 shares, equivalent to 20 million to 400 million VND each.
Of the 12,000 employees working at VIB, about 16% of the bank’s employees were awarded stock awards during this period.
This bank said that the subjects eligible for bonus shares are officers and employees with a position scale of 8 or higher according to internal regulations, excluding members of the Board of Directors and the Board of Supervisors, except in the case of a member of the Board of Directors who is also the General Director, has a contract with a fixed term or indefinite term, and achieves a performance evaluation rating of Qualified or higher.
Previously, some banks such as Techcombank, NamABank, MB also used the ESOP program to retain employees.
Industry insiders believe that this policy ensures employee benefits without incurring much cost for banks. Because according to accounting standards currently applied in Vietnam, the difference between the selling price of ESOP shares and the market price is not reflected in salary and bonus costs. Therefore, ESOP bonuses do not cause banks to incur additional costs, and the profits on the report are more attractive than cash bonuses.
However, these issuances are often unpopular with shareholders, due to concerns about share dilution.