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Corporate Dec 29, 2012

Federal Bank grants stock options to employees worth Rs 114 crore

Mumbai: Federal Bank today said it has granted Employee Stock Options worth around Rs 114 crore to its employees this year.

Federal Bank has offered Employee Stock Options for the second time since the bank implemented the Employee Stock Options Scheme in 2011, the private lender said in a release issued here.

The maximum number of options that can be granted as per shareholder approval is 5 percent. Reuters

The bank granted over 24 lakh shares in 2012 at Rs 474 each. In 2011, it had given 34 lakh shares at Rs 420.65. The bank said the ESO (employee stock option) scheme covers all permanent employees of the bank-from the junior most staff to the Managing Director.

The maximum number of options that can be granted as per shareholder approval is 5 percent of the paid up equity share capital of the bank, which works out to about 85 lakh equity shares. The bank with 1,000 branches has over 10,000 employees.

Employee stock options carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price.

PTI

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