Investec has told the Information Communication Technology Union (ICTU) to direct its questions about the Believe Phantom Option Share Scheme for Cell C workers to the mobile phone company’s management.
Three years ago, on 1 September 2017, Cell C management awarded shares in the Believe Phantom Option Share Scheme to workers. The shares were based on the company’s audited financial results for 2016.
At the time, the share price was R31.06.
Investec, the banking and wealth management group, is the administrator of Cell C’s Believe Phantom Option Share Scheme, also known as the Believe Share Scheme.
The first vesting date for the Believe Share Scheme was set for 1 September 2020.
However, Cell C has since informed the workers of the shares devaluing – meaning workers were no longer due for any payouts.
The ICTU, the sole worker representative at Cell C, on Friday asked Investec to explain the “devaluing” of the Believe Share Scheme.
Asked to comment on the matter by TechFinancials, Investec said it “can confirm” it received queries from ICTU “in respect of the Cell C employee share incentive scheme.”
Investec admitted it was responsible for hosting the Believe Share Scheme online portal, but said it only acted as directed by Cell C.
“The terms and conditions of the scheme, and decisions taken in terms of the awarding of shares, are managed directly by Cell C,” explained Investec.
“Beneficiaries of the scheme have been encouraged to raise their concerns directly with the management and Board of Directors of Cell C.”
For its part, Cell C says it has not paid out any dividends to workers because its EBITDA threshold was not met.