ISLAMABAD - The Cabinet Committee on Privatisation (CCoP) that met under the chairmanship of Federal Minister for Finance and Economic Affairs Dr. Abdul Hafeez Shaikh, has discussed Benazir Employees Stock Option Scheme (BESOS) in order to make it more rational, sustainable and fully aligned with its objectives.
The Cabinet Committee on Privatisation (CCOP) has approved that benefits of BESOS would be extended to employees joining the concerned SOE, after 14th August 2009 and also 75 percent of the annual dividend would be transferred to Central Revolving Fund to buyback the claims instead of 50 percent of annual dividend. The CCoP also agreed that 25pc of the annual dividend would be distributed amongst employees of respective entity, Maximum payout per employee would be capped at Rs.1.0 million and a number of SOEs, which were already privatised, would be de-listed from BESOS.
Earlier, the Secretary Privatisation Commission gave a detailed presentation to the participants highlighting the BESOS objectives, salient features, issues in implementation and recommendations. With the broad objectives of enhancement of employees motivation, loyalty and commitment for improvement of state owned entities (SOEs) efficiency, enabling employees to participate at highest level, ensure participation of employees in profit and increased worth of entity, the Cabinet approved BESOS on 5th August 2009 which envisaged transfer of 12pc GOP shares to eligible workers in 80 state owned entities free of cost by which about 500,000 workers were expected to get benefits.
The CCOP emphasised that the recommendations be implemented on the basic principle of devising distribution mechanism in a way that all employees of the SOEs will get equal benefits through this scheme instead of accumulation of benefit to the small number of people working in a few profit earning entities