Cebu Air shareholders approve long-term incentive plan for employees

SHAREHOLDERS of Cebu Air, Inc., the listed operator of budget carrier Cebu Pacific, approved on Wednesday the company’s long-term incentive plan for its employees, partly aimed at attracting and retaining key talents.

Majority of the shareholders voted to approve the plan during the company’s annual stockholders’ meeting on Wednesday morning.

“The plan is being established with the following objectives in mind: first, to foster ownership mentality among senior management; second, to drive performance and value creation; and third, to attract, retain and motivate key talents,” Cebu Air Corporate Secretary Anne Romadine P. Tieng said at the meeting.

Under the incentive plan, eligible employees may be granted either restricted stock units or stock options.

“Any plans of restricted stock units and stock options will be subject to an award agreement, which will contain the terms and conditions of the award,” Ms. Tieng said.

Cebu Air’s corporate governance committee will be tasked to administer the plan.

The company’s board of directors approved the plan on March 29 this year.

Cebu Air has said it would allocate up to a total of 2% of its issued and outstanding common shares to be granted to “eligible employees.”

The company has reported a net loss attributable to equity holders of P7.3 billion in the first quarter, compared with a net loss of P1.18 billion in the same period last year.

It has also announced the completion of its “business transformation fund-raising plan raising a total of P40.5 billion ($845 million) in three tranches” to face the coronavirus pandemic.

Cebu Air shares closed 0.31% lower at P48.15 apiece on Wednesday. — Arjay L. Balinbin