20 May 1999: Austria“s Radex-Heraklith (RHI), a manufacturer of refractory products for use in lining blast furnaces, is planning an extensive employee participation scheme. Subject to approval by it…
20 May 1999: Austria“s Radex-Heraklith (RHI), a manufacturer of refractory products for use in lining blast furnaces, is planning an extensive employee participation scheme. Subject to approval by its AGM on 27 May 1999, RHI will issue share options to 32 senior managers. These options can be exercised after one year in the event of a 10% rise in the company“s share price. If this goal is not achieved, they can be exercised after two years provided that the price of RHI shares has grown by at least 20% in the interim or after three years in the case of a minimum 30% increase. The options are further linked to the fulfilment of various profit targets. They are also conditional on a substantial own investment by the relevant managers. In order to exercise the options, RHI board members must already hold shares worth at least Sch 450,000. The minimum threshold for other senior managers is Sch 150,000. The number of managers eligible to participate in the option scheme will subsequently be expanded to include those at the group“s German and US subsidiaries, boosting the total to 150. RHI has also announced a participation scheme for its 2,700-strong workforce in Austria. Employees purchasing Sch 40,000 worth of RHI shares will receive free bonus shares valued at Sch 10,000. RHI forecasts that at least half of its workforce will take advantage of this offer. In the medium term, the proportion of share capital in the hands of management and employees is projected to rise from 5% at present to over 10%.