Massmart staff receive a second empowerment dividend
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In a statement issued today, Massmart Holdings delivered a second dividend payment to permanent staff participating in the Thuthukani Staff Empowerment Trust.
In March 2007, the first Thuthukani dividend was paid representing an average of R593 per participant. Massmart CEO, Grant Pattison, says that the dividend payment of R5 514 696 was paid into the Thuthukani Empowerment Trust on 29 October 2007 and was distributed to participating staff with their October salary payments. “This represents a dividend per share of 30.75 cents or 25% of the declared dividend of 123 cents” he adds.
This together with the March dividend, means that a dividend of R14 388 300 has been paid to the Thuthukani trust during the 2007 calendar year. This equates to the payment of an average annual dividend of R983 to each participant in the trust, although specific individual dividend payments vary based on length of service.
In terms of the Empowerment Trust Agreement, beneficiaries earn 25% of the full Massmart dividend during the first year of the transaction, 50% in the second year, 75% in year three and 100% of the dividend for each year thereafter.
“The value of the empowerment deal was in excess of R 1-billion based on the market price of R56.75 per share on 01 October 2006 when the transaction came into effect. Shares were, however, awarded to staff at a strike price of R49.98 each which equated to a discount of 12% per share. The share is currently trading at R86.50 which represents significant growth in value for our staff,” says Pattison.