Safaricom awarded its senior managers 15.3 million shares that are now worth an estimated Sh. 302 million.
The telecommunications giant gave the senior managers these free shares in the financial year that ender in March 2023.
The shares awarded to the Safaricom senior managers were billed as compensation for oast performances.
“During the year, 12.4 million shares were bought by the Trust, at a cost of Sh. 489.4 million (2022:12.4 million shares at a cost of Sh. 489.4 million). Additionally, 15.3 million shares historically valued at Sh. 519.4 million (2022: 15.3 million shares valued at Sh. 519.4 million) vested and were exercised by eligible staff,” Safaricom said in its 2023 annual report.
“The trust currently holds 11.5 million shares at a total cost of Sh. 416.2 million (2022: 11.5 million shares at a cost of Sh. 416.2 million).”
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The Safaricom shares are currently trading at around Sh. 20 per share at the Nairobi Securities Exchange after recovering from the twelve month low of Sh. 13 per share that was recorded in the month of May 2023.
Safaricom is one of the local companies that reward employees with shares. The company runs the employee performance share award program in which it buys its own shares in the open market and allocates them to specific employees.
These employees take ownership after a three-year vesting period when they are free to sell or continue holding the shares in their personal accounts.
These shares are considered part of the compensation program to employees for meeting or exceeding performance targets.