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Laid-off ABS-CBN execs, employees return 4.5M shares under stock option plan

Executives and staff laid off by ABS-CBN Corp. have returned a total of 4.455 million shares of the former media giant.

The shares were allocated to them under the ABS-CBN Stock Purchase Plan (rank and file employees, technical specialists and internal job market members with at least one year tenure) and Executive Stock Purchase Plan (managers and artists and members of the Board of Directors with at least one year tenure) approved by the Lopez-led management in 2017.

ABS-CBN executives and employees have to withdraw their stock purchases under these plans if their employment is terminated or ceases as a result of resignation or voluntary separation.

Thousands of ABS-CBN employees were terminated starting August 31 following the expiration of the broadcast network’s franchise on May 4 and the House committee’s decision to deny its franchise renewal on July 10.

Under the plan, employees can buy up to 2,000 ABS-CBN shares at a 15 percent discount on the shares’ market price and payable in five years.

Managers and artists can subscribe up to a maximum of shares equivalent to 2.5 months of their monthly salary while board members can buy up to 100,000 shares.

The shares purchased is payable over five years but the 15 percent discount will only apply to the first 2,000 shares they bought.

ABS-CBN shares have plunged by 86 percent to P6.96 from P48 when the stock plan was adopted in February 2017.

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