KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2024 WE ARE KENANGA OUR SUSTAINABILITY APPROACH LEADERSHIP STATEMENT HOW WE ARE GOVERNED SHAREHOLDERS’ INFORMATION NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 FINANCIAL STATEMENTS ADDITIONAL INFORMATION OUR VALUE CREATION APPROACH 365 364 55. EQUITY COMPENSATION BENEFITS (CONT’D.) Kenanga Group’s Employees’ Share Scheme (cont’d.) (1) ESOS (cont’d.) ESOS Fifth Offer Tranches of vesting: First tranche Second tranche Third tranche Fourth tranche Fair value of share options (RM) 0.0981 0.102 0.1046 0.1038 Share price at offer date (RM) 0.550 0.550 0.550 0.550 Exercise price (RM) 0.580 0.580 0.580 0.580 Expected volatility (%) 29.450% 29.450% 29.450% 29.450% Risk free rate (%) 2.480% 2.480% 2.480% 2.480% Expected dividend yield (%) 7.220% 7.220% 7.220% 7.220% The exercise period is 3 years from vesting date. ESOS Sixth Offer Tranches of vesting: First tranche Second tranche Third tranche Fourth tranche Fair value of share options (RM) 0.2105 0.2244 0.2259 0.2205 Share price at offer date (RM) 1.270 1.270 1.270 1.270 Exercise price (RM) 1.370 1.370 1.370 1.370 Expected volatility (%) 35.713% 35.713% 35.713% 35.713% Risk free rate (%) 2.500% 2.500% 2.500% 2.500% Expected dividend yield (%) 9.263% 9.263% 9.263% 9.263% The exercise period is 3 years from vesting date. (2) ESGP Under the ESGP award, the ESS Committee may, within the period of the Scheme and at its discretion, grant to the eligible employees an ESGP awards, in the form of Restricted Share Plan (“RSP”) and/or Performance Share Plan (“PSP”). Subject to acceptance, the awards will be vested to the grantees at no consideration, provided all the vesting conditions as determined by the ESS Committee are fulfilled, in accordance with the terms of the by-laws and taking into account the objectives of the RSP and the PSP as stipulated. 55. EQUITY COMPENSATION BENEFITS (CONT’D.) Kenanga Group’s Employees’ Share Scheme (cont’d.) (2) ESGP (cont’d.) Key features of the RSP and PSP awards are as follow: (a) RSP The RSP is a restricted share incentive plan, in recognition of the loyalty and individual contributions of the eligible employees towards the development, growth and success of the Group. The vesting conditions are stipulated and determined by the ESS Committee, which may include, amongst others, the achievement of individual performance as measured by both qualitative and quantitative key performance indicators (“KPIs”), during such period as stipulated in the ESGP award. (b) PSP The PSP is a performance share plan in recognition of the contribution of the eligible employees as drivers of the growth and performance of the Group. The PSP is intended to promote the alignment in the strategic achievements of the Group with that of the eligible employees to drive the creation of shareholders’ value and the growth of long term financial performance of the Group. The vesting conditions are stipulated and determined by the ESS Committee, which may include, amongst others, the achievement of relevant service objectives and specific performance targets as measured by both qualitative and quantitative KPIs, during such period as stipulated in the ESGP award. On 2 January 2018, 3,612,735 units of share grant were allocated under PSP and on 3 May 2021, 3,610,000 units of shares were awarded to eligible Senior Management of the Group and of the Bank. Details of share options awarded under PSP: Award date Number of PSP share awarded Vesting date 03.05.2021 3,610,000 02.06.2021 PSP Grantee is restricted from selling or transferring the shares issued to him or her for a period of one year from the award date. 56. SIGNIFICANT AND SUBSEQUENT EVENTS (a) There was no significant event during the financial year ended 31 December 2024 other than the following: Changes in composition of the Group (i) On 6 September 2024, the Bank and Rakuten Securities Holdings, Inc. had each disposed 2,500,000 shares in Rakuten Trade Singapore Pte. Ltd. to Rakuten Trade Sdn Bhd for a total consideration of RM11,411,970, via the issuance of 20,021,000 new ordinary shares of Rakuten Trade Sdn Bhd. Upon completion of the disposal on 6 September 2024, Rakuten Trade Singapore Pte. Ltd. has become a wholly-owned subsidiary of Rakuten Trade Sdn Bhd. Arising therefrom, the issued and paid-up share capital of Rakuten Trade Sdn Bhd had increased from 80,000,000 ordinary shares (RM80,000,000) to 100,021,000 ordinary shares (RM91,411,970).
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