In a significant move tied to its compensation policy, Habib Bank Limited (HBL) has credited nearly 3 million of its own shares to selected employees. The transaction, valued at approximately Rs 1.01 billion based on a share price of Rs 341.60, was completed on February 2, 2026.
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This action is part of HBL’s Risk Aligned Remuneration Policy. Under this system, a portion of the annual bonus for senior staff—specifically Material Risk Takers (MRTs), Material Risk Controllers (MRCs), and designated General Managers (GMs)—is deferred and paid in company stock.
The shares are held in a trust and vest to employees over three years. The recent transfer included shares from three different annual tranches:
- First Tranche (2024): 683,927 shares to 130 employees
- Second Tranche (2023): 1,022,713 shares to 120 employees
- Third Tranche (2022): 1,249,617 shares to 114 employees
The primary goals of this policy are to align the long-term interests of key employees with the bank’s performance and stability, and to encourage responsible risk management by linking a portion of their compensation to the bank’s share value over time. The bank confirmed the process fully complies with all Pakistan Stock Exchange regulations and securities laws.
