In the framework of its efforts to raise the investment awareness of all parties working in the capital market, the CMA recently issued a new publication related to the incentive plans for all employees working at listed companies at the Egyptian Stock Exchange.

It should be noted that incentive plans aim to remove this conflict which may occur between the interests of the company and the interests of the employees , as both are seeking to obtain the maximum benefits at the same time. The employees want to get a high salary, while the company wants a greater productivity. This is due to the traditional concept which may be summarized in the fact that the employees shall work for certain number of hours in return for payment, regardless of the outcome of the company and the positive or negative impact of this on the prices of the company’s shares .

In order to remove this conflict the incentive plans shall be applied by providing the employees the opportunity to own part of the company’s shares, if he participates and contributes in increasing the productivity of the company, through exerting more effort and creating new ideas.

The incentive plans shall allow the employees to own part of the company’s shares as a result of their efforts and this shall encourage them to serve the company more in the future. It also allows managers and employees to increase their income by taking advantage of the rise in the prices of the traded shares of the company.

Meanwhile, the CMA draws attention to the fact that the investors shall not depend on this publication upon taking any decision as the publication is issued within the context of the public awareness campaign planned to raise the awareness of the plans and legal and financial and investment mechanisms governing securities markets in particular and capital markets in general.

To access the full text of the manual,(Click Here-Only Available in Arabic).