Riyadh – Mubasher: Saudi Arabian Oil Company, globally known as Saudi Aramco, has established the "Saudi Aramco Share Plan" to provide additional incentives to employees whose contributions are essential to the growth and success of the company.
The move comes along with the company’s strategy to attract and retain qualified individuals and to further align the interests of such employees with shareholders of the company, according to the company’s prospectus issued early Sunday.
The Compensation Committee or a subcommittee will administer the plan and all sub-plans and has the authority to grant and determine the terms of awards consisting of restricted shares and units, performance shares and units and other share-based awards.
Aramco noted that awards under the plan may be granted to full-time employees of the company and any of its subsidiaries and affiliates selected by the compensation committee to participate in the plan.
Aramco, the world’s largest oil company, has established sub-plans consisting of:
- A long-term incentive plan for executives
- A long-term incentive plan for other members of management
- An incentive plan for certain other employees
- A celebratory grant plan
The Saudi-based company may establish other sub-plans in the future, including an employee stock purchase plan.
Following closing the offering, the Government will sell Shares with a value of $1 billion (SAR 3.75 billion) to the company for use under the plan and all sub-plans.
In addition, Shares repurchased by the Company after the effective date of 3 October 2019G will be eligible for use under the plan and sub-plans.
Shares may be granted under the plan for 10 years from the effective date.
