Toss Bank Grants Stock Options for the 22nd Time

Toss Bank has granted stock options to its employees for the 22nd time, marking the third issuance this year. As a latecomer in the internet banking sector, the bank utilizes stock options as a regular compensation method to attract financial and IT talent and encourage long-term employment.

According to the banking sector on September 2, Toss Bank granted stock options for 68,550 common shares to 25 employees on August 31. The exercise price is set at 5,000 won per share. If all options are exercised, the total cost would be approximately 342.75 million won, averaging about 13.7 million won per person.

The eligible employees can exercise their options from August 2028 to August 2034, two years after the grant date. Stock options give employees the right to purchase company shares at a predetermined price after a certain period of employment. If the stock value exceeds the exercise price in the future, employees can realize a profit.

This marks the 22nd issuance of stock options by Toss Bank, with a cumulative total of 8,107,286 shares granted. Assuming all are exercised at the price of 5,000 won per share, the total exercise value would be around 4.05 billion won.

This year, Toss Bank has granted a total of 655,420 shares across three rounds. The total number of employees receiving options adds up to 119. Toss Bank regularly grants stock options to employees who have been with the company for over a year, linking long-term company growth with employee compensation rather than relying on one-time bonuses.

Based on the number of grants disclosed, Toss Bank is the most active among the three internet banks in utilizing stock options. Kakao Bank has granted options three times since its launch, while K Bank has done so once. This strategy is seen as a way to address the challenges faced by a latecomer in the competition for financial and IT talent.

However, as Toss Bank is a non-listed company, it is currently difficult to determine the market value of the stock options and the expected profits. The actual compensation value for employees will depend on Toss Bank's future corporate value and its potential listing.

A Toss Bank representative stated, "We grant stock options to employees who have been with us for over a year to secure talented professionals and boost morale. Our goal is to go public in the medium to long term, but we are not at a stage to disclose specific plans yet."