Concepcion Industrial to buy back shares for employees

Leading consumer appliance and industrial solutions manufacturer Concepcion Industrial Corp. (CIC) has unveiled a program to buy back shares from the stock market and award these to deserving employees.

In a recent board meeting, CIC approved the 2018 long-term share incentive plan, which will be funded annually based on 1-2 percent of the company’s attributable net profit.

The shares will then be given to deserving employees based on predetermined conditions.

The program sought to create “equity interest in the company and foster identification with shareholder interests” toward common company goals, CIC said in a disclosure to the Philippine Stock Exchange yesterday.

“This means fostering an ownership culture in which employees take a greater interest in the factors driving long-term business success,” the disclosure said.

The program was also meant to retain key talents and attract new ones while improving the total compensation of employees by “allowing eligible employees to build personal wealth through equity value appreciation of company stocks.”

CIC chair and chief executive Raul Joseph Concepcion reported to shareholders that the company was moving to grow its core business while also expanding to new areas.

The company has created a new unit called Cortex, which seeks to incubate new technology and initiatives in developing new products and solutions for their clients and their own businesses.

Concepcion said the company was expected to post a 12-percent year-on-year growth in attributable net profit on the back of a 14-percent expansion in sales driven by strong consumer and commercial air-conditioning markets. —DORIS DUMLAO-ABADILLA