Under its Restricted Share Performance Plan (RSPP), Access Corporation, the largest bank in Nigeria in terms of total assets, recently granted share options to some important executives, valued at over N427 million.
Among the recipients are Chief Financial Officer Seyi Kumapayi, MD/CEO Rosevelt Ogbonna, and Acting Group CEO Bola Agbede.
23.8 million shares, valued at N17.9 a share on average, were allocated in total.
These shares are free of charge to the employees under the rules of the RSPP and vest over three years, contingent on performance standards. Certain additional group employees are also covered by the company’s plan, under which shares vest over seven years.
As of December 2023, Rosevelt Ogbonna held 44,883,087 million of the bank, while Kumapayi and Bola Agbede held respective 25,475,406 and 34,239,373 million. 30.7 billion shares are currently outstanding for Access Corporation.
It’s unclear if this is the end of the shares that will vest or if there will be other attempts to vest shares in the corporation’s senior executives and management.
Access Corporation’s RSSP
Transferred from the bank to the parent business, Access Holdings, which buys shares on behalf of Nigeria Exchange Group employees, the shares are kept in a Structured Entity (SE).
- The plan allows for the set aside of up to 20% of the bank’s employees’ total pay each financial period for this purpose.
- The financial accounts of Access Corporation document the financial effects of the RSPP. Up to the end of the vesting period, a liability related to the share options is recorded at each reporting date. Adjustments for gains or losses are shown in the comprehensive income statement.
- An employee loses their entitlement if they quit before the shares vest.
- Shares that the bank had formerly owned in the SE are currently listed as receivables from Access Holdings.
As of December 2023, Access Corporation had over one billion one hundred and fourteen million (1,114 million shares) outstanding under its staff share scheme, according to the company’s 2023 financial statement.
The company added that its employees received shares worth approximately N2.96 billion in 2023, with each share having a weighted average fair value of N8.45 on the grant date.
After its 2023 fiscal year, Access Corporation reported earnings per share of N17.23, with a total of around 30.7 billion shares outstanding.
Additionally, the business announced an N1.8 dividend per share. The company recently released its interim first-quarter results, which showed that earnings per share increased to N4.35, more than double.
