KUALA LUMPUR (April 13): Offshore support vessel provider Icon Offshore Bhd has proposed to replace its existing employee share scheme (ESS) with a new long-term incentive plan (LTIP) for its employees and executive director Datuk Seri Hadian Hashim, which will be in force for 10 years.

As such, it is seeking to end the existing ESS ahead of its expiration period at end-2024. The scheme commenced in January 2015 for five years up to Dec 31, 2019 and was extended for another five years up to December 2024.

In a bourse filing on Thursday (April 13), Icon said the proposed move is to align its long term incentive plan with market practices, making its compensation package more comprehensive and competitive. The proposed LTIP is also to balance the performance and retention outcomes to ensure that employees’ performance is in line with Icon’s performance.

The proposed LTIP will comprise an employee share option scheme (ESOS), as well as an employee share grant plan that will include a retention share plan and a performance share plan.

"The aggregate maximum number of Icon shares which may be made available under the proposed LTIP will not exceed 5% of the number of issued shares of the company," it added. As of April 7, Icon's issued share capital stood at RM1.15 billion, comprising 2.71 billion shares.

It noted that proceeds raised from the exercise of the ESOS options will be utilised for working capital.

The proposals are conditional upon approvals from Bursa Securities, shareholders of Icon at an EGM to be convened, as well as the group’s creditors. The proposed LTIP is expected to be implemented by the second half of 2023.

KAF Investment Bank Bhd has been appointed as the principal adviser to the proposals, while  Deol & Gill has been appointed the legal adviser to Icon for the proposals.

Icon shares closed 5.26% lower  at 9.5 sen on Thursday, giving it a market capitalisation of RM243.59 million.