On the information distributed via media sources regarding the incentive with stock ownership plan of key executives and employees of companies of AB “Ignitis grupė”
On 27 April 2021 the media has published publications regarding the legitimacy of incentive of key executives and employees with stock ownership plan (hereinafter – the Plan) (hereinafter – the Publications).
AB “Ignitis grupė” (hereinafter – the Company) releases an explanation to inform the investors, the public and other market participants, so they are not mislead by the Publications.
The Company informs that Vilnius District Prosecutor’s Office, after it received a statement from a private person, contacted the Company and the authorities concerned with a request to submit information related to the Plan.
The Company explains that after completing the initial public offering, the Company is an issuer since 7 October 2020 whose shares are being traded in publicly regulated market, i.e. it is a listed company. The state owns 73.08% of the Company’s shares, the remaining part – 26.92% of shares – is being traded in the regulated markets. The Company’s shares can be acquired by retail investors from Lithuania and abroad in the regulated markets. This part of the shares, which is being traded in the regulated markets, is not a state-controlled asset. The Company’s shares would be allocated to employees and key executives as part of the incentive and remuneration by transferring owned shares of the Company, i.e. the Company would acquire own shares from the regulated markets. Therefore, the shares owned by the right of ownership by the state would not be allocated and it would not affect the size of the controlling stake (73.08%) of the controlling shareholder – the state – in any capacity.
According to the assessment of the Company, employee and executive incentive with a stock ownership plan as a variable remuneration part is a modern process complying with the best international practices and Law of the Republic of Lithuania.
The Company is one of the first state-owned enterprises that initiated such practice in Lithuania, therefore, it is natural that the authorities request a more detailed explanation and delve into the principles of a stock ownership plan as well as legal regulation of such systems. According to the assessment of the Company, neither the public interest, nor legal acts were violated.
The Company is providing and will continue to provide all necessary information and will cooperate in any other capacity in order to explain that neither the public interest, nor legal acts were violated.
All information regarding the stock ownership plan was announced via the securities markets, both stakeholders and shareholders as well as the public were informed about these processes. Information about the updated Company’s Remuneration Policy and Share Allocation Rules approved during the General Meeting of Shareholders was announced on 25 March, the approved executive long-term incentive plan was announced on 22 March.
The Company will inform about the material events related to the Plan according to the procedure set out in legal acts.
For more information please contact:
Head of Public Relations at Ignitis Group
+370 620 76076