Friday, 04 Nov 2011 | By MoneyWeb.co.za
Kumba Iron Ore announced that its shareholders had approved the general terms and conditions necessary to implement phase one of its broad based employee share participation scheme known as Envision.
The offering is seen as the most generous in the history of SA mining with employees from the lowest skill levels expecting to take home what may amount to R500 000 for five years of service.
This is in addition to the basic salaries earned by employees and an average of ZAR 55 000 in dividends thus far payed out by the scheme to individual participants.
According to Vusani Malie company secretary, employees will be paid out the capital appreciation linked to Envision’s 3% holding of Sishen Iron Ore Company, Kumba’s major subsidiary, accumulated over the five years since the scheme was implemented
The actual value of the payout will be calculated based on the five day volume weighted average price of Kumba’s shares up to November 17, said Malie, with the final payout being made on December 15.
All employees below managerial level will stand to benefit an equal amount on a pro-rata basis calculated according to the total period over which they had been employed during the life of the first phase of the scheme.
Malie said that the scheme will pay out a total ZAR 2.5 billion or ZAR 500 000 for an employee who has been employed by Sishen for the full five year period.
More than 5 800 employees stand to benefit from the scheme.
Kumba Iron Ore announced that its shareholders had approved the general terms and conditions necessary to implement phase one of its broad based employee share participation scheme known as Envision.
The offering is seen as the most generous in the history of SA mining with employees from the lowest skill levels expecting to take home what may amount to R500 000 for five years of service.
This is in addition to the basic salaries earned by employees and an average of ZAR 55 000 in dividends thus far payed out by the scheme to individual participants.
According to Vusani Malie company secretary, employees will be paid out the capital appreciation linked to Envision’s 3% holding of Sishen Iron Ore Company, Kumba’s major subsidiary, accumulated over the five years since the scheme was implemented
The actual value of the payout will be calculated based on the five day volume weighted average price of Kumba’s shares up to November 17, said Malie, with the final payout being made on December 15.
All employees below managerial level will stand to benefit an equal amount on a pro-rata basis calculated according to the total period over which they had been employed during the life of the first phase of the scheme.
Malie said that the scheme will pay out a total ZAR 2.5 billion or ZAR 500 000 for an employee who has been employed by Sishen for the full five year period.
More than 5 800 employees stand to benefit from the scheme.
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