BY NKECHI NAECHE-ESEZOBOR--AXA Mansard Insurance Plc, said it has approved an accelerated exercise of the company’s Options Scheme that was granted to eligible staff along with the accrued bonus in 2015 and 2017.
The Board of Directors of the company gave the approval at its 85th board meeting held on the 12th of February said the eligible staff (current staff and good leavers) will have an immediate right to exercise such vested options at the grant prices as contained in their grant letters.
The resolutions of the meeting, further reads: “The Trustees and the Administrators be and are hereby authorized to take all steps and do all acts that they deem necessary for the successful implementation of the above stated resolutions,” the insurance firm said.
Employee stock options (ESOs) are a type of equity compensation granted by companies to their employees and executives. Rather than granting shares of stock directly, the company gives derivative options on the stock instead. These options come in the form of regular call options and give the employee the right to buy the company’s stock at a specified price for a finite period of time. Terms of ESOs will be fully spelled out for an employee in an employee stock options agreement.
In general, the greatest benefits of a stock option are realized if a company’s stock rises above the exercise price. Typically, ESOs are issued by the company and cannot be sold, unlike standard listed or exchange-traded options. When a stock’s price rises above the call option exercise price, call options are exercised and the holder obtains the company’s stock at a discount. The holder may choose to immediately sell the stock in the open market for a profit or hold onto the stock over time.
