Equity Bank has allocated five percent stake to its employees in the Democratic Republic of Congo as part of the employee share ownership plan (Esop). According to former disclosures, the Equity Group has an Esop which holds a 3.2 percent stake.
The bank has now proposed an employee share ownership plan for its Congo workers who will only hold shares in the subsidiary. Furthermore, Equity Bank has asked its shareholders to endorse the issuance of 125,371 shares or five percent stake in the subsidiary to the employees.
The proposal comes after the bank issued 70.8 million shares in the parent company to former owners of the Congo-based bank as part of their 2015 cash and stock buyout. Currently, the Kenyan bank owns 86 percent stake in the Congo unit.
The share ownership plan entails giving employees a share for free or at a discount in an effort to motivate them and join their interest with that of the shareholders.