Home' Trinidad and Tobago Guardian : September 18th 2014 Contents The six Republic Bank sen-
executive directors and
three senior officers---sold
311,319 shares worth more
than $37.55 million in the
nation's largest bank
between May 16 and
August 28 this year, according to calculations
done by the Business Guardian of information
that is publicly available on the T&T Stock
Exchange Web site.
The Republic insiders selling the bank's
stock are senior officers and executive directors,
according to the bank's managing director,
David Dulal-Whiteway. Republic has three
senior officers and three executive directors,
according to the company's list of shareholdings
of senior officers and directors in its 2013
The calculations indicate that senior officers
sold 86,260 shares and the three executive
directors disposed of 225,062 shares between
May 16 and August 28.
The annual report indicates that three exec-
utive directors owned 105,315 shares as at the
end of September 2013, while the three senior
officers identified in the 2013 annual report
owned 65,634 shares on the same date.
This probably means that bank insiders
acquired a significant number of shares by
way of stock options in the bank's 2014 finan-
cial year, which runs from October 1, 2013, to
September 30, 2014.
Asked to explain why the senior executives
sold 311,319 shares in the 14-week period
between May 16 and August 28, Dulal-White-
way said by e-mail on Monday: "These trades
are by senior officers and executive directors
exercising share options granted, but not exer-
cised three years or more ago.
"Management can exercise their options
and keep or sell the resulting shares at their
discretion within periods that management
and directors are permitted to trade.
"Let me know if you require further clar-
The Business Guardian did seek further
clarification, submitting a list of seven ques-
tions, including why did all five of the top
management of the bank choose this 14-week
period to sell their stock options?
The response, issued by Republic's group
general counsel and corporate secretary, Jacque-
line Quamina, stated: "The bank has three
executive directors and several senior officers.
There are more than two senior officers in the
bank, see the definition in the Financial Insti-
tutions Act. But not all general managers are
senior officers, though.
"The times during the year when we permit
the executive directors and senior officers and
certain other managment to trade shares is
strictly regulated and quite limited. With quar-
terly reporting, shares cannot be traded one
month before the release of results and two
months before the year end.
"Also, if any of us are working on something
that makes us privy to non-public information'
that could impact the share price, we are pro-
hibited from trading.
"The result is that the period within which
these persons are allowed to trade shares tends
to be for a short period of time and therefore
may happen at the same time.
Republic Bank has two employee incentive
plans: a stock option plan for the five senior
executives, which received shares valued at
about $10 million during the 2013 financial
year, which ended on September 30, 2013,
employees and a profit sharing scheme for
staff that received $94 million for the same
Under the stock option plan, the senior
executives have the right to purchase a specified
number of the bank's ordinary shares at a pre-
determined price on or before a pre-determined
date, if they meet certain targets.
According to Note 26 (b) of the 2013 annual
report: "There is a three-year waiting period
after the grant date of options before the
grantee may exercise the right to purchase the
shares represented by the options. The max-
imum period within which an option may be
exercised is ten years."
This means that the 311,319 shares sold by
the Republic Bank insiders between May 16
and August 28, 2014, would have been granted
three or more years ago.
But it also leaves open for question why the
BG4 | COVER STORY
BUSINESS GUARDIAN www.guardian.co.tt SEPTEMBER 2014 • WEEK THREE
Republic executives sell
shares worth $37.55m
• August 28
senior officer sold
• June 27
a senior officer sold
• June 24
senior officer sold
senior officer sold
how many shares
sale price transaction
Continued on Page 5
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