KOREA: KEB execs granted stock options - 1 Apr 2009
KEB execs granted stock options |
http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2009/04/01/200904010035.asp
Shareholders of the Korea Exchange Bank yesterday granted stock options to new CEO Larry A. Klane and other executives.
Wary of a public outcry over generous rewards to bankers, however, the
executives said they will return the privilege should the lender
receive any financial support from the government.
The stock option payout was approved by the general shareholders' meeting in Seoul.
U.S. buyout fund Lone Star is the largest shareholder of the
nation's sixth-largest bank with a 51.02 percent stake, followed by the
Export-Import Bank of Korea and the Bank of Korea. At present, the KEB
does not need capital support from the bank recapitalization fund, as
its BIS capital adequacy ratio stands at 12.6 percent, bolstered by its
recent issue of 250 billion won worth of hybrid debt.
Richard Wacker, the bank's former CEO who was appointed chairman of the
board of directors at yesterday's meeting, said he would voluntary give
up stock options included in a compensation package for this year
should the lender's financial health deteriorate to the point of
requiring an injection of any type of public funds.
"Even if that does not happen, we are considering handing them over to the KEB charity foundation," he said.
A total of 22 executives, including new CEO Larry A. Klane, were given
the rights to buy a total of 1,655,000 shares of the bank.
Klane was granted options for 900,000 shares as part of his compensation package for a three-year term.
Shareholders also approved a dividend payout of 125 won per share,
which should deliver 41.1 billion won in dividends to Lone Star.
The decisions contrast with other banks that decided to cancel stock
options offered to their executives and scrap plans for dividend
payouts to soothe public anger toward banks that need government help.
Critics blame them for not making enough efforts at self-help, while
offering generous rewards to executives and paying dividends to
shareholders, even though they receive extensive support from the
government.
By Lee Sun-young
(milaya@heraldm.com)
2009.04.01
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