|Last Updated: Jan 20th, 2024 - 03:42:02
Messrs Patrick Hylton and Dennis Cohen were graded F in the share intrigue with National Commercial Bank (NCB). Their long tenure with the bank led them to believe they were indispensible, forgetting that at the end of the day they were employees and like all employees are subject to the dictate of the boss.
Piecing together this puzzle, we figure that the 95 million shares the loyal pair surrendered to treasury (specifically MF&G Asset Management Limited- NCB Share Scheme) in July 2021 ended shoring up the banks profit for that fiscal year. The exorbitant compensation to the men thereafter was intended to compensate over time for value surrendered, however their employment was unexpectedly cut short in July 2023.
In the notes to the June 2021 quarterly report it stated inter alia that the surrendered shares were eligible for future share distributions to executives including Messrs Hylton and Cohen, this did not preclude the bank from issuing 77 million new shares in the final settlement with both men. It cost NCB shareholders 4.8 billion dollars representing 24% of 2023 net profit in addition to the dilution.
Source: Jamaica Stock Exchange, Jamaica Gleaner, Jamaica Observer
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