Debswana won't benchmark on Anglo

An executive at mining giant, Debswana, has rebuffed suggestions for the company to benchmark on Anglo American share incentive plan, which is intended to empower employees.

De Beers and Botswana own Debswana. The latter, has come up with a Share Incentive Plan (SIP) through which employees are able to buy ordinary shares. In its recent announcement, Anglo explained that this is done through monthly deductions from salaries, and are allocated an equivalent number of free ordinary shares (“matching shares”). “Both the purchased shares and the matching shares are held in the SIP Trust. The matching shares are acquired by the SIP Trust and allocated to the relevant employees.

During the short period of time between acquisition and allocation, the executive directors of the Company are deemed to be interested in those shares,” reads the statement. Debswana is nowhere near adopting the same exercise as Anglo. In an interview with BG Business about the initiative, Debswana Head of Human Resources, Nthoi Mosetlhe said that SIPs usually apply to listed companies. Mosetlhe emphasised that at Debswana they have their own way of rewarding employees. “We do have bonus plans, which employees go in,” she said. Among these are, the Quarterly bonus plan; Shot term incentive plan which pays once in a year usually around February/March and a Long term incentive plan which pays every three years. “But there is also the common 13th cheque,” she said, which is provided when the company has performed well.

She added that before the company calculates bonuses, it engages the employees together with the Union representatives. The shareholders and employees of the mining giant Debswana have this year something to smile about as the company declared a fat balance sheet in its recent financials for the year 2014. The company headed by Balisi Bonyongo who took over from Jim Gowans early this year, has seen its profit revenues rise from P21.2 million in 2013 to P26.7million in 2014. Mosetlhe said it is at a time like this when the company rewards its employees. “The employees should indeed have something to look forward to this year. We have performed very well.” Meanwhile, Anglo in November revealed transactions that took place in relation to the SIP, in which 1. 2,299 shares were allocated to employee participants as matching shares.

Five of the company executive directors or persons discharging managerial responsibility (PDMR) of the Company each acquired the undernoted ordinary shares at a price of £13.355 and were allocated an equal number of matching shares. This also includes Anglo American Chief Executive Officer Mark Cutifani and the De Beers Group Chief Executive, Phillipe Millier.

Last modified on Tuesday, 16 December 2014 09:47

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