Budapest, May 2, 2016 14:30
The leading Hungarian telecommunications service provider launches and employee share ownership program within the frame of which the vast majority of Magyar Telekom Plc. and T-Systems Hungary Ltd. employees may be entitled to a share benefit. The program will be in addition to the company’s regular remuneration package.
In 2017 Magyar Telekom Plc. and T-Systems Hungary Ltd. employees may receive a 100,000 HUF worth share benefit calculated at the market value as of June this year. Eligible employees are also entitled to dividends for such shares. The condition of the provision of the share benefit is that the Company’s actual operating Free Cash Flow MT-Hungary indicator for the year closed on December 31, 2016 exceeds that same indicator measured for the year closed on December 31, 2015.
In July 2016, Magyar Telekom will purchase a maximum of 1,6 million of its own shares in the open market and set these aside in a special purpose vehicle (ESOP Organization) created for the purposes of distributing the shares to the eligible employees.
Whether the condition on the operating Free Cash Flow indicator is satisfied will presumably be known in February, 2017 upon which the ESOP Organization is expected to distribute the shares in April, 2017 among maximum 7,500 employees. The shares will vest the following day with no lock-up restrictions attached.
“In respect of our success we must not forget that the results are based on our employees’ efforts. The employee share ownership program is designed to express our gratitude to our employees and to give them further momentum, motivation and an enhanced owner’s vision ” - said Christopher Mattheisen, Chief Executive Officer.