KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 295 ANNUAL REPORT 2018 55. EQUITY COMPENSATION BENEFITS Kenanga Group Employees’ Share Scheme The Bank has established and implemented an ESS for the employees of the Bank and its non-dormant subsidiary companies. The ESS consists of two types of awards in the form of ESOS and ESGP. (1) ESOS Under the ESOS award, the ESS Committee may, within the period of the Scheme and at its discretion, offer to the eligible employees a certain number of ESOS options to subscribe for the Bank’s shares at the exercise prices subject to the applicable terms and conditions of the by-laws. Subject to acceptance, the participants will be vested the options which can then be exercised within a period of three years, provided that all the vesting conditions are fulfilled. Key features of the ESOS awards granted during the financial year are as follow: On 2 January 2018, the Bank has offerred 49,579,000 of options under ESOS to the eligible employees of the Group (“ESOS First Offer”). The exercise price of the ESOS First Offer is RM0.575. Out of the 49,579,000 options offered, 2,218,000 options have been vested on 1 March 2018 and exercisable within three (3) years from date of vesting. On 31 May 2018, the Bank has offerred 10,000,000 of options under ESOS (“ESOS Second Offer”). The exercise price of the ESOS Second Offer is RM0.630. None of these options have been vested as at the reporting date. Details of share options granted under ESOS: Offer date Vesting date Number of options (‘000) Exercise price Number of exercisable options (‘000) Exercise period 2.1.2018 01.03.2018 2,218,000 0.575 1,989,600 01.03.2018 - 28.02.2021 2.1.2018 N/A* 47,205,000 0.575 N/A N/A 31.5.2018 N/A* 10,000,000 0.630 N/A N/A * Based on 3-year cliff vesting from the offer date and performance metrics.