Staff at Singapore banks reap big windfall as company stocks shoot up
Singapore bank employees are gaining significant wealth through employee share purchase plans as bank stocks reach record highs, though experts advise caution regarding market risks and individual plan conditions.
Unlike buying shares through the stock market, participating in an ESPP allows eligible employees to contribute a fixed sum from their monthly salary over a predetermined period.
ST ILLUSTRATION: MANNY FRANCISCO
Angela Tan
Published
- Employee share purchase plans (ESPPs) at Singapore banks like OCBC, DBS, and UOB have turned disciplined monthly savings into significant wealth for employees as bank stocks hit record highs.
- ESPPs offer employees discounted shares, forced savings, and matching contributions, encouraging long-term investment and loyalty, with many participants benefiting from dividends and capital gains over years.
- While past performance is strong, employees should understand plan details, risks, and conditions, as economic shifts could affect share prices and overall returns.
SINGAPORE – “Yes, I am in heaven – seventh heaven!” Maggie Liu says with a laugh as the shares of OCBC climbed to record highs.
source: The Straits Times https://www.straitstimes.com/business/invest/spore-bank-employees-reap-big-windfall-when-their-employers-stocks-shoot-up?ref=invest
