Capitec will be issuing 625,000 shares to employees who have been with the bank for more than three years.
On 19 January, Capitec announced that it is planning to issue around 625,000 new shares, valued at R1 billion, to its employees.
“In the last two years, our people have worked extremely hard,” retiring Capitec CFO and co-founder André du Plessis said. “We did well to align the interests of the staff with that of investors and we actually want to reward all staff who have been with Capitec for a long period.”
According to André, employees who have been with the company for longer than three years in a permanent position, from the most junior to the most senior, are invited to participate in the transaction. The only exceptions are the executive directors and the executive management.
Employees who have been with the company for longer than five years can get a 15 percent higher allocation.
Similarly, black employees can get a 15 percent participation on top of that as well. “Part of the transaction is to increase black ownership to eventually get to the 25 percent mark,” André explained.
Currently, Capitec is at 19.4 percent on the scorecard.