Islamabad, November 08, 2012 (PPI-OT): The Cabinet Committee on Privatization (CCOP) met here today under the chairmanship of Dr. Abdul Hafeez Shaikh, Federal Minister for Finance and Economic Affairs to discuss Benazir Employees Stock Option Scheme (BESOS) in order to make it more rational, sustainable and fully aligned with its objectives. The meeting aimed to discuss various operational issues faced by Privatization Commission affecting the true spirit of the scheme.
Secretary Privatization 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 12% GOP shares to eligible workers in 80 state owned entities free of cost by which about 500,000 workers were expected to get benefits.
In the light of objectives set for BESOS, Secretary Privatization Commission placed before the CCOP recommendations, already approved by the sub committee after its detailed consideration and examination, for approval of the CCOP.
CCOP considered and analyzed each recommendation given by Secretary Privatization Commission and made necessary amendments where required. It was agreed that: (1) benefits of BESOS would be extended to employees joining the concerned SOE, after 14th August 2009, (2) 75% of the annual dividend would be transferred to Central Revolving Fund to buyback the claims instead of 50% of annual dividend, (3) 25% of the annual dividend would be distributed amongst employees of respective entity, (4) Maximum payout per employee would be capped at Rs.1.0 million, (5) A number of SOEs, which were already privatized, would be de-listed from BESOS.
The CCOP emphasized 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.
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