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Gloria asked 2 years ago

Hi Victor/Rusmin
When we key in the number of shares in the excel template, do we need to take away treasury shares and add back treasury shares the company reissued due to equity compensation plans/ stock option plans? 

Thanks.

1 Answers
Victor Chng answered 2 years ago

Hi Gloria,
 
If the company buyback treasury shares for equity compensation then you have to add back the figure.
 
If it is just a share buyback to reduce shares count then treasury should not be added back.

Gloria replied 2 years ago

Hi Victor
Thanks so much for the reply.

However, I don’t quite get what you mean by adding back. For example, SATS seem to have bought shares from the stock market from FY 2013/2014 onwards, although the number of shares indicated remained constant at 1124 mil from FY 2013/2014 onwards.

I was thinking in the perspective that treasury shares were not newly issued shares, so not sure if we need not adjust the number of shares outstanding figure, or we should take away the number of treasury shares held from the 1124 mil shares (and in that case, do we need to add back when the treasury shares are reissued for the purpose of stock options/ executive compensation plans?).

Thanks very much in advance.