http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=21685
Effectively, he has sold the shares at Rs280 and bought back under ESOP at 120 a piece..!!
Learning point: If one employee's usage of ESOP has this much of impact, you can imagine how much of share dilution will take place when all eligible employees use their ESOP rights.
ESOP is very good, rewarding scheme for employees but general shareholders should be aware of the dilution effect this will bring and its effects on valuation - the share price can come down due to this as it happened in the recent past..!