KEB may grant stock option to new head: sources

SEOUL, March 25 (Yonhap) -- Korea Exchange Bank (KEB), controlled by U.S. buyout fund Lone Star Funds, may grant a stock option to its newly nominated chief executive officer, industry sources said Wednesday.

KEB shareholders will decide whether to grant Larry A. Klane the right to buy
900,000 shares at an annual meeting scheduled for Tuesday, sources said. The
exercise price is estimated at 5,800 won (US$4.18).
Shares of KEB were trading at 6,500 won on the main bourse as of 11:04 a.m., down
1.52 percent from the previous day.
"The issue is on the agenda. But whether to grant the right or not will be
decided at the meeting," a KEB official said.
KEB's move comes despite a decision by executives at local banks to give up such
rights as part of an effort to share the burden of the sharply slowing economy.
KB Financial Group and Shinhan Financial Group recently took such steps.
Local banks are set to receive a capital infusion by tapping a bank
recapitalization fund in a bid to cushion the impact of the severe economic
downturn and expand lending to the real economy.
Against a bleak economic backdrop where wages for new employees are being cut
across the board, the granting of stock options to company executives has drawn
widespread criticism.