Remuneration and Corporate Social Responsibility in Capilanohoney and Teachers Mutual Bank

ACCOUNTING FINANCIAL ANALYSIS REPORT
PART B
II. Remuneration Report
Employee Stock Option Plan is a long term incentive plan to retain talents within the
company and to award those employees who have been serving the organisation for a very
long time in the form of ownership interest in the company. In layman terms, it offers
ownership interest in the organisation. This incentive plan has a vesting date and exercise
period. These are convertible into equity of the company.
(Defmacro Software Pvt. Ltd., 2018)
The company has proposed issue of 30000 options in 2017 and 30000 options in 2018 that
are convertible to equity under the proposed incentive scheme and are subject to
performance.
The following are some of the advantages that have been highlighted in the annual report of
the company for two years i/e/ 2017 and 2018:
(a) It helps the company to improve long term performance as employees are motivated and
they start feeling as their own company being incentivised to be offer shares in long
term. The employees try to align their goals and vision in alignment with goals and
vision of the company;
(b) The incentive plan attracts, retains and motivate eligible employees which has been
essential for the development and continued growth of the company. Further, it plays a
crucial role in enhancing and strengthening the relationship between the company and
eligible employees and the employees start treating the company as their own company.
The plan fully motivate the employees.
The company officially launched the plan on 18th November, 2016 at Annual General
Meetings of Shareholders and the above two advantages are linked with long term
performance perspective of the company.
(Capilanohoney, 2018)
III. Corporate Social Responsibility
Corporate Social Responsibility is a business model that helps an organisation to be socially
accountable- to itself, to the society, stakeholders etc. The same was launched to enable
companies to contribute a portion of their profit to social welfare. The activities can range
from donating money to implementing environmental friendly policies at work place.
The initiatives that have been taken by Capilanohoney as underlined in their annual report has
been detailed here-in-below:
(a) Rewarding the employees for achievement through incentive payments when annual
results exceeds targets. These are in the form of annual general incentive plan of the
company. It has been endorsed by the HRRN committee of the organisation and
approved by board;