PLDT to award up to 860,000 shares to key officers, employees

Chrisee Dela Paz
PLDT to award up to 860,000 shares to key officers, employees
The telco also aims to close 2017 with a higher recurring core income of P21.5 billion, from P20.16 billion in 2016

MANILA, Philippines – PLDT Incorporated will award a total of 860,000 common shares to its key officers and employees who contribute to its long-term transformation and financial goals.

In March 2016, the telecommunications giant said it intends to turn around its fortunes and grow its profits again after a 3-year digital shift.

PLDT told the local bourse on Wednesday, September 27, that its board approved its transformation incentive plan, which is intended to provide incentive compensation to key officers, executives, and other eligible participants who are consistent performers and contributors to the achievement of its long-term goals.

“The incentive compensation will be given in the form of PLDT common shares of stock. A total of up to 860,000 performance shares will be awarded under the plan,” Maria Lourdes Rausa-Chan, corporate secretary of the telco giant, said in the disclosure. (READ: PLDT still no.1 among mobile subscribers)

Chan said the incentive shares will be released in 3 grants on the condition that pre-determined consolidated core net income targets are successfully achieved over 3 annual vesting periods from January 1, 2017 to December 31, 2019.

The telco also aims to close 2017 with a higher recurring core income of P21.5 billion, from P20.16 billion in 2016, mainly due to the gain from asset sales in Beacon Electric Asset Holdings Incorporated.

PLDT’s core income for the 2nd quarter of 2017 increased to P12.1 billion from P10.5 billion in the same period a year ago.

To execute the incentive plan, a trustee will be appointed to acquire PLDT shares in the open market through the facilities of the Philippine Stock Exchange (PSE), which will comprise the performance shares.

The trustee will administer their distribution to the eligible participants subject to the terms and conditions of the incentive plan.

“I’m satisfied because we are on the right track. However, there are still many tasks ahead of us, particularly in the wireless side. Significant growth in traffic volume in that area did not match growth in revenue. There is still a huge effort needed to monetize the growth in traffic,” PLDT chairman Manuel Pangilinan said in August.

PLDT also announced on Wednesday that it has completed fiber deployment at Rockwell Center in Makati City, providing residents with broadband speeds of up to 100 megabit per second (Mbps).

As of end-June, PLDT’s fiber facilities have passed 3.3 million homes. It is deploying hybrid fiber technologies, such as Huawei’s G. fast, which can boost data speeds up to 600-700 Mbps over copper lines.

PLDT has invested around P300 billion ($6 billion) over the last decade to roll out its fixed and wireless network infrastructure, which now has 150,000 kilometers of fiber optic cables.

Shares of PLDT went down by P20 to P1,615 each on Wednesday. – Rappler.com