Dialog proposes employee share incentive plan worth 2% stake

Dialog Axiata PLC said it is seeking shareholder approval to introduce a long-term incentive plan (LTIP) that could see up to 184.0 million shares issued to eligible employees, as the telecom giant moves to strengthen talent retention and align employee performance with long-term shareholder value.

The proposed LTIP, approved by the Dialog board through a circular resolution dated May 19, will allow the company to issue up to 2 percent of its total issued shares to employees of Dialog and its subsidiaries.

The company said the plan is aimed at attracting, retaining and rewarding high-performing employees across the Dialog Group while aligning their interests with the long-term interests of shareholders.

Under the proposed structure, no individual employee will be entitled to receive more than 1 percent of the company’s issued shares at any given time. The allocation will also be adjusted proportionately in the event of corporate actions such as share increases or reductions to avoid dilution-related disadvantages to existing shareholders or beneficiaries of the scheme.

Dialog said shares granted under the LTIP would be issued in consideration of services rendered by employees to the company and the wider group. The reference price for the share issuance will be based on the volume weighted average price of Dialog shares over the 30 market days immediately preceding the grant date.

As at 31 March 2026, Dialog’s stated capital stood at Rs.39.91 billion, represented by 9.20 billion ordinary shares.

The proposed share-based incentive scheme remains subject to Colombo Stock Exchange approval in principle and shareholder approval through a special resolution at a general meeting.