ARTICLE

ASMPT Limited has announced the issuance and allotment of 1,953,200 Awarded Shares under its employee share incentive scheme, representing approximately 0.47% of its existing and enlarged issued share capital. These shares, issued at a nominal value of HK$0.10 each, aim to incentivize and retain valuable employees and will rank equally with existing shares in terms of rights and privileges. The total funds raised, HK$195,320, will be used as general working capital, with an application made to the Hong Kong Stock Exchange for listing and trading of the newly issued shares.

Despite economic pressures from rising interest rates and inflation, participation in salary sacrifice employee share plans has remained strong, as revealed by a Computershare analysis across ANZ clients. Key factors driving this resilience include the simplicity of automatic salary deductions, tax benefits, and employer matching contributions, which together make these plans appealing long-term investments. For employers, the sustained popularity of these plans highlights their value as a tool for boosting engagement, fostering a sense of ownership, and enhancing employee compensation packages to attract and retain talent.

Equity Stock Ownership Plans (ESOPs) are a vital tool for incentivizing and retaining talent in Southeast Asia’s competitive startup ecosystem, offering employees equity at favorable terms to align their interests with company success. However, tax regulations for ESOPs vary significantly across the region, with factors such as timing of grants, territorial versus global tax systems, and capital versus employment equity shaping the tax treatment in countries like Singapore, Indonesia, and Thailand. Companies must navigate these complexities carefully, structuring equity plans to optimize employee benefits and minimize tax liabilities while ensuring compliance with diverse regional regulations.

 

Swiggy's IPO, valued at ₹11,300 crore, has unlocked ₹9,000 crore worth of employee stock options (ESOPs), creating significant wealth for around 5,000 employees, with nearly 500 becoming 'crorepatis.' Employees can sell their shares a month after listing, thanks to a regulatory exemption, while the IPO was oversubscribed 3.59 times, driven by institutional investors. With its ESOP program spanning three plans since 2015, Swiggy's founders and top management collectively hold ESOPs worth ₹2,600 crore, emphasizing the company's commitment to rewarding employee contributions.