Astra executives offered stock ownership option<\/p>\n
JAKARTA (JP): In a first for locally listed companies, leading
\nIndonesian auto firm Astra International is offering high-
\nachieving senior executives an option to buy company shares at
\ndiscounted prices.<\/p>\n
Astra's chief executive Rini M.S. Soewandi said on Tuesday
\nthat a stock option offer for high achievers would improve their
\nsense of belonging to the company and therefore improve their
\ndedication and eventually boost the company's performance.<\/p>\n
She said the stock ownership option would be carried out over
\nthree years, starting this year with 32.4 million stocks on offer
\n-- representing 1.3 percent of current outstanding shares.<\/p>\n
The execution price for this year's stock option will be Rp
\n1,800 a piece, far cheaper than Tuesday's closing price of Rp
\n3,775.<\/p>\n
Rini said the stock option directly benefited both the
\nemployees and the company. She said it served as an incentive for
\nhigh achievers, and at the same time would have a positive impact
\non the company's cash flow.<\/p>\n
\"This stock ownership program has a medium and long-term
\nobjective, so that it will give greater benefits to the
\nemployees, and at the same time improve the company's performance
\nin the long run,\" she said.<\/p>\n
For the time being, the stock option will only be offered to
\nemployees from the managerial level up. The next program will
\nalso include high-achievers at the lower level.<\/p>\n
Astra is the first publicly listed firm offering direct stock
\nownership to its employees.<\/p>\n
In developed countries, stock ownership programs have become a
\ncommon practice among listed firms. In the United States, for
\ninstance, more than 90 percent of public companies have offered
\nstock options to their employees, compared to 80 percent in
\nBritain and 50 percent in Hong Kong.(rid)<\/p>",
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"sponsor_url": "https:\/\/okusiassociates.com"
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