(February 23 – 15:40 ET) – Industrial-Alliance Life Insurance Company has adopted a stock option plan for the senior management of its group companies, as well as a share purchase plan for employees.

“These plans are the next step in becoming an employer of choice, capable of holding on to its best resources,” says Yvon Charest, president and CEO of Industrial Alliance. “These plans are also a way to share the Company’s success with employees and senior managers.”

The goal of the stock option plan for the senior management I, says the company, is to foster development and growth by retaining key managers and linking a portion of their remuneration to the appreciation in the value of the company’s shares.

The number of shares that can be issued under this plan is set at 2.6 million, or 7% of the number of shares outstanding on February 10, 2001. The exercise price of the initial purchase options granted has been set according to the average weighted price of stocks negotiated on the Toronto Stock Exchange during the week of February 5, 2001.

The rights granted under the plan can be exercised over a period of ten years, starting on the first anniversary of the date they are granted. Almost 50 managers are already participating in the plan. The first allocation totals just under 500,000 shares.

The plan has been approved by the Toronto Stock Exchange. It came into effect February 10, 2001. It is still subject to ratification during the shareholder annual meeting on May 2, 2001.

“The purpose of the share purchase plan for employees is to encourage them to become Company shareholders to strengthen their feeling of belonging to the organization and rally the employees around the objectives and expectations of the shareholders.”

Under the plan, employees can contribute up to 5% of their salary, or $1,500 per year. To encourage employees to participate in the plan, the company will contribute an amount equal to 50% of each employee’s contribution. The employees must keep the shares they purchase for a minimum of two years.
-IE Staff