Karachi: In a significant move reflecting its commitment to aligning risk and rewards, HBL has announced the distribution of shares as part of its deferred compensation plan for Material Risk Takers (MRTs), Material Risk Controllers (MRCs), and designated General Managers (GMs) for the years 2021 to 2023. The initiative, executed in accordance with the bank's Risk Aligned Remuneration Policy, involves the allocation of shares vested in a pool under a Trust.
On February 06, 2025, HBL disclosed that the deferred component of variable compensation will be systematically distributed over a span of three years. According to the plan, one-third of the deferred compensation for each year will vest, subsequently transferring the corresponding HBL shares to the eligible employees. This strategic approach is designed to ensure a sustained alignment between the bank's risk management objectives and employee incentives.
As part of the first tranche of deferred compensation for the year 2023, a total of 1,178,499 shares have been credited to the CDC accounts of 136 employees. Similarly, for the second tranche of deferred compensation for 2022, 1,533,602 shares have been allocated to 131 employees. Moreover, the third tranche for 2021 saw 808,074 shares credited to 116 employees. The transfer of shares was conducted at the rate of Rs. 172.35 on February 03, 2025, and Rs. 169.54 on February 04, 2025, by M/s. Akhtar and Hassan (Pvt) Limited through a Brokerage House.
According to information available from the Pakistan Stock Exchange (PSX), HBL has ensured compliance with all applicable rules and regulations, including those set forth by PSX Regulations and the Securities Act 2015. This adherence underscores the bank's dedication to maintaining transparency and upholding its regulatory obligations.
HBL's material information announcement highlights its ongoing commitment to fostering a robust risk management culture while rewarding its key personnel. The bank's strategic approach to deferred compensation aligns with broader market practices and reinforces its position within the designated market category.