CBZ abandons share plans | Business Times

BUSINESS REPORTER

 

CBZ Holdings Limited, a listed financial services provider, has abandoned plans to put in place a Share Option Scheme for directors and senior management,  a move meant to allow for more engagements with stakeholders, Business Times can report.

CBZ was considering asking  the shareholders for their consent  at the annual general meeting (AGM) held on July 21 as the matters were placed on the agenda of the AGM under special business.

In order to obtain shareholder approval for the proposed CBZ Holdings Limited Senior management Share Option Scheme, CBZ had planned to use special resolutions 1, 2, 3, 5, 6, and 7.

Additionally, there were also plans to ask the shareholders for permission to implement the non-executive directors share plan, which includes special resolutions 8, 9, and 10.

However, the items were removed from the agenda just before the AGM.

Contacted for a comment, CBZ group chief marketing and corporate affairs officer, Matilda Nyathi told Business Times that  the plan was dropped to allow for additional stakeholder consultation.

The plan was withdrawn  to allow for further engagement with various stakeholders.

“The matters were withdrawn to allow for further engagements with various stakeholders as well as the shareholders,” Nyati said.

A share option is a right granted to  employees, executives  or directors to purchase shares at a price set on the date the option is granted, subject to the expiration of a predetermined option period.

The main reason for using share incentive plans is largely to retain, motivate and to recruit employees.

They are also used to help align the interests of the employees, particularly senior executives, with those of shareholders. The aim of this alignment is to encourage employees to consider the best interests of the company and shareholders in their management of the business as they potentially have a future equity interest in the business.

In its trading update for the quarter to March 31, 2023, CBZ reported total income of ZWL$986.8bn  up from ZWL$14.3bn reported in the prior comparative period.

Profit for the group grew  959, 5 percent  to ZWL$50.19bn in the period under review from ZWL$4.7bn reported in the same period in 2022.

Total assets for the group stood at ZWL$1.3 trillion compared to ZWL$2.2bn reported in the prior comparative period.

“The group posted a commendable set of results during the period, a testament to the resilience of its business strategy. Driving such profitable performance, is a diversified income mix, and a fair split of funded and non-funded income.

The group’s strong asset base continues to underline the business underwriting capacity as a leading player in the industry. Strategies aimed at maintaining asset quality and capital preservation will continue to be employed.

As part of its market leadership, and commitment to customers, the group enhanced technological advancements and digitalisation during the quarter for ease of transactional processes and sustainability,” CBZ  group chief governance officer, Rumbidzayi Jakanani said.

Looking into the future,  Jakanani said CBZ will continue to tap on its investments in manufactured, intellectual, human and financial capital to manage attendant risks and pursue emerging opportunities in the markets that it operates in.

 

 

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