MTel employees to become entitled to shares
The board of Magyar Telekom, the Hungarian subsidiary of German telco giant Deutsche Telekom, yesterday decided to launch a program, under which the “vast majority” of its employees would become entitled to shares, according to reports.
Under the decision, employees will be entitled to shares with a value of HUF 100,000, calculated on the average share price on the 20 trading days prior to June 30, 2016, and employees will be entitled to a dividend on the shares while there will be no lock-up restrictions, Hungarian news agency MTI reported.
The award of the shares is contingent upon an annual increase of the internal operating free cash flow of Magyar Telekomʼs MT-Hungary segment, MTI said.
The company is also expected to buy up to 1.6 million treasury shares on the open market in July. An employee share ownership organisation is to be established in the third quarter.
Upon confirmation of the improvement in the MT-Hungary segmentʼs operating free cash flow in late February 2017, the shares will be awarded to some 7,500 employees in April 2017, according to MTI.
“Magyar Telekom expects this initiative to increase further employee engagement through a strengthening of the ownership culture,” the company said, according to the news agency.
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