A number of local banks are planning to issue Employee Stock Ownership Plan (ESOP) shares this year and next to help supplement charter capital and comply with the capital adequacy ratio (CAR).

The An Binh Commercial Joint Stock Bank (ABBANK) will issue more than 11 million ESOP shares, Techcombank more than 6 million, and HDBank 40 million. Others are readying for an issuance, such as SeABank, VPBank, OCB, MSB, and LienVietPostBank, among others.

ESOP shares are not only a reward for the hard work of officers and employees but also help a bank mobilize a large sum of money to increase capital, meet business needs, and ensure compliance with the CAR, according to Mr. Dao Manh Khang, Chairman of ABBANK.

Those receiving ESOP shares are generally long-time employees who have contributed to the development of the business. According to experts, however, ESOP shares also have a downside, such as management profiting at the expense of shareholders.