HBL Credits Over 3.5 Million Shares to Employees Under Deferred Compensation Plan

Habib Bank Limited (HBL) has distributed over 3.5 million shares to its employees as part of its Risk Aligned Remuneration Policy. This policy offers deferred variable compensation to Material Risk Takers (MRT), Material Risk Controllers (MRC), and selected General Managers (GM). The bank announced the move in a filing with the Pakistan Stock Exchange (PSX) on Thursday.

The deferred compensation for these employees is placed in a trust pool and consists of HBL shares purchased from the open market by a brokerage firm acting on behalf of the trust. Annually, one-third of the deferred compensation vests, with the corresponding shares being transferred to the employees.

For the first tranche of the 2023 compensation, 1,178,499 shares were credited to the CDC accounts of 136 employees. Previous tranches included the second tranche for 2022, where 1,533,602 shares were distributed among 131 employees, and the third tranche for 2021, involving 808,074 shares allocated to 116 employees.

These shares were transferred at prices of Rs 172.35 per share on February 3, 2025, and Rs 169.54 per share on February 4, 2025, with M/s. Akhtar and Hassan (Pvt) Limited acting as the trustee for the transaction.