Habib Bank Limited (PSX: HBL) has completed the transfer of a total of 3,965,914 shares to its employees under the deferred variable compensation framework, as part of the bank’s Risk Aligned Remuneration Policy. The move, disclosed to the Pakistan Stock Exchange on February 9, 2026, highlights the bank’s commitment to structured long-term incentives for its senior management and risk-focused staff.
The share allocation covers employees identified as Material Risk Takers (MRTs), Material Risk Controllers (MRCs), and designated general managers (GMs), with shares vested through a trust structure. The trust purchased shares from the open market via a brokerage house acting on its behalf, ensuring transparency and regulatory compliance throughout the process.
The transfer process was executed in three tranches. The first tranche, corresponding to deferred compensation for 2024, credited 683,927 shares to 130 employees’ accounts with the Central Depository Company (CDC). The second tranche, linked to 2023 deferred compensation, involved 1,022,713 shares transferred to 120 employees. The third tranche, associated with 2022 deferred compensation, included 1,249,617 shares credited to 114 employees. All shares for the three tranches were transferred on February 2, 2026, at a price of Rs341.60 per share. The share transfers were facilitated through M/S Akhtar and Hassan (Private) Limited, acting as one of the trustees in the arrangement.
HBL confirmed that all transfers complied fully with applicable rules and regulations under the Pakistan Stock Exchange framework and the Securities Act, 2015. The bank emphasized that the program aligns employees’ incentives with long-term shareholder value and prudent risk management, reinforcing a culture of performance and accountability.
This initiative is part of HBL’s broader strategy to retain and reward key talent while maintaining strong governance standards in line with international banking practices. By leveraging a trust-based structure for deferred variable compensation, the bank ensures that employee rewards are linked to sustainable performance outcomes and risk-adjusted decision-making, which is increasingly relevant in Pakistan’s evolving banking sector.
The structured vesting approach, where one-third of the deferred variable compensation is released annually, provides employees with a clear pathway to realize their long-term incentives while promoting retention and operational continuity. Analysts note that such practices are becoming a key differentiator for leading banks in Pakistan, balancing compensation with risk governance.
Overall, the completion of nearly four million share transfers demonstrates Habib Bank’s continued focus on aligning management interests with those of shareholders, fostering a disciplined approach to risk and growth, and ensuring compliance with regulatory frameworks while promoting transparency in employee compensation practices. The move is expected to strengthen both talent retention and confidence among stakeholders in HBL’s governance and operational processes.
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