UK - Telecommunications giant Marconi will be seeking shareholder approval for the introduction of a staff share plan at its annual general meeting on September 13.
Marconi needs shareholder approval to introduce the save-as-you-earn share scheme under provisions within the restructuring plan it put in place when it was on the verge of collapse with debts of £4bn in 2000.
At the time of the restructuring, which was completed last July, Marconi limited the number of unissued shares that could be committed to its Senior Management Share Option Plan to 9%, and 5% for its Employee Share Option Plan.
Presently, only 60% of the share capital available to workers has been claimed.
Marconi says that to allow its Sharesave Plan to operate in a ‘meaningful way’, the number of unissued shares available to it should be a further 5% of the company’s issued share capital, over the 10-year life of the plan.
Employees, who will be required to save monthly over either three or five years, will be able to acquire Marconi stock for 80% of its market value and receive a tax-free bonus at the end of their saving periods.
Employees who save for five years may leave their savings with the scheme for a further two years when an enhanced bonus will be paid. The scheme will be available to all employees, and the maximum contribution staff can make is £250 per month.
However, Marconi also states that no options may be granted under the Sharesave Plan if the aggregate number of ordinary shares held by workers exceeds 5% of the firm’s capital within a 10-year period.
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