TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

BRI to share stocks with employees through ESOP

Innovation talk: BRI's president director Asmawi Syam and BRI's director of compliance Randi Anto talk to the journalists about innovations the bank has made, prior to The Banker Award event in London on Wednesday (Dec

Arif Gunawan S. (The Jakarta Post)
Jakarta
Sun, December 6, 2015

Share This Article

Change Size

BRI to share stocks with employees through ESOP Innovation talk: BRI's president director Asmawi Syam and BRI's director of compliance Randi Anto talk to the journalists about innovations the bank has made, prior to The Banker Award event in London on Wednesday (Dec. 2). BRI received 'Indonesia's Bank of the Year 2015' from Financial Time's banking-specialized magazine The Banker. (thejakartapost.com/Arif Gunawan S.) (Dec. 2). BRI received 'Indonesia's Bank of the Year 2015' from Financial Time's banking-specialized magazine The Banker. (thejakartapost.com/Arif Gunawan S.)

I

span class="inline inline-center">Innovation talk: BRI's president director Asmawi Syam and BRI's director of compliance Randi Anto talk to the journalists about innovations the bank has made, prior to The Banker Award event in London on Wednesday (Dec. 2). BRI received 'Indonesia's Bank of the Year 2015' from Financial Time's banking-specialized magazine The Banker. (thejakartapost.com/Arif Gunawan S.)

Bank Rakyat Indonesia (BRI), Indonesia'€™s most profitable lender, plans to make employees part-owners of the company through an employee stock ownership plan (ESOP) as part of an effort to maximize benefit to stakeholders.

BRI president director Asmawi Syam said that the ESOP program was in the pipeline and would be launched after the permit was sealed. The company is still preparing the details of the program, including the amount of shares to be involved.

'€œNext year, when our performance grows higher, we will conduct an ESOP. Not an MSOP [management stock option plan], but an ESOP. This is a long-term show of appreciation for our employees,'€ he said to thejakartapost.com during a visit to London for The Banker Award ceremony on Thursday.

An ESOP is a program that provides a workforce with stock ownership in its employer company, which is usually treated as employee bonus packages for good work performance. The stocks are allocated to employees and may be held in an ESOP trust until the employee retires or leaves the company.

The program, Asmawi further said, was also in accordance with Indonesian Financial Service Authority's (OJK) recommendation that listed companies distribute more shares to more individual investors.

BRI'€™s director of compliance Randi Anto explained that BRI had spent up to Rp 1.3 trillion (US$93.9 million) per month paying salaries to its 130,000 employees across the country, equaling Rp 10 million per person on average.

'€œWith that amount of money, you could build three hotels per month, which would cost roughly Rp 400 billion each. The contribution that we already make to our staff is that big. However, we are now trying to give them more sustainable benefits [as well],'€ he said.

BRI is celebrating 120 years of operation on Dec. 16, marking its status as the longest local bank to operate in Indonesia. (ags)

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.