We meet today to approve an Employee Stock Option Plan (ESOP) and Employee Stock Purchase Plan (ESPP), for Lopez Holdings Corporation.
The ESOP and ESPP have often long been established as a strategy to align the interests of a company’s employees with those of the shareholders.
We met with much success implementing such plans in Meralco and other Lopez Companies. Employees embraced corporate objectives and gave their best to transform the company into the professional and innovative organization that it is today, not only because they had genuine concern or malasakit for the company. They were also justly incentivized by the prospect of benefiting from the appreciation of the company’s share price in the stock market, a benefit that only shareholders used to enjoy in the past.
For Lopez Holdings, this has been a long time coming. Some believe that after an arduous eight-year journey out of debt restructuring, perhaps this is the right time to implement the ESOP and ESPP.
In today’s competitive marketplace, where corporations are vying for scarce resources, including the best talent that can help them navigate the future, Lopez Holdings must ensure that it is sufficiently manned and equipped to move forward and succeed. Institutional knowledge can be built using such long-term incentive plans as the ESOP and ESPP. Continuous organizational learning is facilitated as people look to their future with a company that values their contribution beyond lip service, and with shareholders who place confidence in their skill and judgment.
Moreover, having such a long-term incentive plan for the workforce puts Lopez Holdings at par with best practices in corporate governance in the Philippines today.
Thank you for making time today, to place Lopez Holdings in the roster of the most well-governed publicly listed companies in the country’s stock market.