After a year of big profits, Mobile World lets employees buy thousands of billions worth of stocks 'cheaply'

Mobile World has just approved the issuance of more than 19.93 million preferential shares at VND10,000. Chairman Nguyen Duc Tai and non-executive board members did not participate in this policy.

Mobile World is one of the businesses that often uses ESOP shares to retain talent - Photo: MWG

Mobile World Investment Corporation (MWG) has just announced the resolution of the board of directors, approving the share issuance ratio under the stock option program for key managers of the company and its subsidiaries (ESOP 2024).

ESOP is the abbreviation of the English phrase "Employee Stock Ownership Plan", which means issuing bonus shares to employees.

This is a popular method used by many companies, including MWG, to encourage and reward employees.

Mobile World issues nearly 20 million ESOP shares at 10,000 VND

The number of shares to be issued by MWG according to the approved plan is more than 19.93 million, with a par value of VND 10,000/share.

The issuers are clearly stated in the resolution as leaders, key managers, and employees in general who have contributed to the development of MWG. It should be noted that this list will be according to standards and approved by the board of directors.

Also according to the resolution, Chairman Nguyen Duc Tai and non-executive board members do not participate in this ESOP policy.

The issuance of preferential shares this time is calculated by MWG based on the completion rate of the 2024 after-tax profit plan of 155.5%.

In addition, MWG said the average stock price movement in 2024 compared to 2023 is 33%, calculated by the average closing price.

Accordingly, MWG's stock price has performed at least 10% better than the average performance of the VN-Index, so the maximum ESOP issuance rate is 2%.

Finally, based on business results and personnel restructuring results, MWG's board of directors decided to issue more than 19.93 million ESOP shares, equivalent to a ratio of 1.3642%. The expected implementation time is in the first quarter of this year.

All ESOP shares will be restricted from transfer within 2 years from the date of issuance. At the end of the session on February 12, MWG's market price was VND56,400/share.

Thus, if calculated according to the stock price currently traded on the stock exchange, the ESOP issuance is worth over 1,100 billion VND. However, in reality, MWG's officers and employees only need to spend nearly 200 billion VND to buy all these shares.

ESOP shares will be revoked if you quit your job.

In 2024, MWG has repurchased treasury shares many times to recover the amount issued under the ESOP program of retired employees.

Regarding business performance, MWG recorded net revenue of VND 34,793 billion in the fourth quarter of 2024, an increase of nearly 10% over the same period in 2023. Profit after tax reached VND 852 billion, 9.5 times higher than the same period.

In 2024, MWG recorded revenue of VND 135,225 billion, an increase of nearly 14% compared to 2023 (more than USD 5 billion). Thus, on average, each day, the Mobile World system, Bach Hoa Xanh, An Khang pharmacy chain... brought MWG VND 370 billion.

As a result, after deducting all expenses, MWG's net profit reached VND 3,733 billion, 22.3 times higher than in 2023.

The Gioi Di Dong leaders said that although thegioididong.com and Dien May Xanh stores operate 221 fewer stores than in 2023, the company's revenue still grew. This growth came mainly from the refrigeration and phone industries.

As for Bach Hoa Xanh, MWG said that revenue grew more than 30% compared to the same period despite not opening any new stores, thanks to focusing on improving the quality of points of sale, safety, and stability of goods...

Source: https://tuoitre.vn/sau-nam-lai-lon-the-gioi-di-dong-cho-nhan-vien-mua-re-co-phieu-ca-ngan-ti-20250212205927953.htm