Commercial Bank okays ESOP plan

Hiran H. Senewiratne

An Employee Share Ownership Plan (ESOP) to grant a 5% stake in four separate trenches of 1.25% each in the Commercial Bank was passed at the Extraordinary General Meeting (EGM) recently.

“Before passing the resolution on this ESOP it was sent to all shareholders for their approval and through a poll we were able to pass it”, Commercial Bank Chief Operating Officer Ravi Dias told the Daily News Business.

Deputy Chairman B.R.L Fernando chaired the meeting in the absence of Chairman Mahendra Amarasuriya.

According to banking sources the scheme was benefiting some 120 members of the top management.

It is said the trade unions have opposed it saying that the method of distribution was not equitable while the bank staff is of the view it as an ill considered move on the part of the management, its sources said.

The three trade unions representing the staff- Ceylon Bank Employees Union, the Association of Commercial Bank Executives and Staff Association of Commercial Bank have been acting in harmony particularly in the face of attempts to oust the bank’s chairman Mahendra Amarasuriya.

Ken Balendra resigned from the bank’s director board soon after the EGM citing personal reasons.

However, his resignation is believed to be a pre-planned one and had nothing to do with the developments at the EGM.