Shares available from Thursday; each employee to receive about 1.88 million won worth

A view of LS Electric's smart factory in Cheongju. [LS Electric]
A view of LS Electric's smart factory in Cheongju. [LS Electric]

LS Electric disclosed Wednesday that it will dispose of treasury shares worth 6.1 billion won ($4.09 million) to reward employees with stock compensation.

The company will distribute 32,520 common shares, valued at approximately 6.1 billion won based on Tuesday's closing price of 187,700 won per share.

The disposal period runs from Thursday through Aug. 14.

A total of 3,252 employees are eligible to receive shares. On a simple per-person basis, each would receive an average of about 10 shares worth approximately 1.88 million won. However, the actual number of recipients and the share price at the time of distribution may affect the final amounts.

The shares being disposed of represent about 0.02 percent of total shares outstanding, and the company said the dilution effect on share value would be minimal.

LS Electric said it used treasury shares as a source of performance-based compensation for employees, and added that it plans to also use restricted stock units (RSU) going forward.


eyre@heraldcorp.com