Industrial Alliance Sets Up a Stock Option Plan for Senior Management
A Share Purchase Program Is Also Offered to the Employees
Industrial-Alliance Life Insurance Company has announced the adoption of a stock option plan for the senior management of the Industrial Alliance Group companies, as well as a share purchase plan for employees.
"These plans are the next step in becoming an employer of choice, capable of holding on to its best resources," explained Yvon Charest, President and Chief Executive Officer of Industrial Alliance. "These plans are also a way to share the Company´s success with employees and senior managers."
The goal of the stock option plan for the senior management is to foster the Company´s development and growth by retaining key managers and linking a portion of their remuneration to the appreciation in the value of the Company´s shares.
The number of shares that can be issued under this plan is set at 2.6 million, or 7% of the number of shares outstanding on February 10, 2001. The exercise price of the initial purchase options granted has been set according to the average weighted price of stocks negotiated on the Toronto Stock Exchange during the week of February 5, 2001. The rights granted under the plan can be exercised over a period of ten years, starting on the first anniversary of the date they are granted. Almost 50 managers are initially participating in the plan and the first allocation totals just under 500,000 shares. The plan has been approved by the Toronto Stock Exchange and came into effect on February 10, 2001. It is still subject to ratification by the shareholders during the annual meeting on May 2, 2001.
Participation in the Company´s success for employees
The purpose of the share purchase plan for employees is to encourage them to become Company shareholders to strengthen their feeling of belonging to the organization and rally the employees around the objectives and expectations of the shareholders.
Under the plan, employees can contribute up to 5% of their salary or $1,500 per year. To encourage employees to participate in the plan, the employer will contribute an amount equal to 50% of each employee´s contribution. The employees must keep the shares they purchase for a minimum of two years before selling them.
The Industrial Alliance Group is among the most solid financial institutions in Canada, where it is clearly an industry leader in insurance and financial services. The Group has operations across Canada through the parent company, Industrial Alliance (Quebec City), and its subsidiaries, including IA Pacific Life (Vancouver) and National Life of Canada (Toronto). As the seventh largest life insurance company in Canada, the Group has more than $14 billion in assets and managed funds. Industrial Alliance´s share is listed on the Toronto Stock Exchange and is part of the TSE 300, where it is among the 100 largest Canadian companies. The parent company´s web site is: www.inalco.com.
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