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Chrysler completes 4-year stock plan.

Chrysler Corp. completed its 4-year employee stock ownership plan by distributing 1,661,691 shares of common stock to more than 80,000 employees, including 63,000 members of the United Auto Workers union. The distribution amounted to 19 shares per worker at an average market value of $24.45 per share.

Chrysler has contributed $162.5 million worth of stock, or 15,251,891 shares, to the plan since its inception in 1980. Eligible employees who received shares during all of the plan years now hold $4,500 worth of company stock, or 179 shares each, including shares purchased with dividends paid in April 1984. The shares will continue to earn dividends and will be kept in trust for employees until they retire or otherwise terminate employment.

The employee stock ownership plan was mandated in the Chrysler Corp. Loan Guarantee Act of 1979 in return for a Government guarantee of repayment of up to $1.5 billion of loans Chrysler could obtain from private lenders. Chrysler actually borrowed $1.2 billion and completed repayment in 1983.
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Publication:Monthly Labor Review
Date:Sep 1, 1984
Words:177
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