Omnia, a company listed on the JSE announced the launch of its broad-based employee share ownership program on Tuesday, which will see all eligible permanent employees employed as of July 1 of this year, receive an equal number of fully funded shares with an initial vesting period of three years ending June 30, 2024.
The program, originally called the Omnia Management Share Trust (a profit-sharing program in accordance with Annex 14 of the JSE) was approved by the shareholders of the group on October 20, 2014 with the intention of creating a property within the company for all eligible permanent employees, and so that participants can benefit from any appreciation of the Omnia share price over time.
The diversified chemical group specifies that the objectives of the system are “to enable all employees to participate in the group’s growth over the long term by becoming full shareholders, regardless of their geographical location”.
It also states that this initiative aims to promote employee engagement, engagement and retention while aligning with the common corporate goal of improving performance through increased productivity of individuals and teams. .
Omnia CEO Seelan Gobalsamy said the launch shows his commitment to strengthening Omnia’s global positioning through its reset and growth strategy. “It is designed to be inclusive, with all of our employees becoming Omnia shareholders and having the opportunity to benefit from our future growth by aligning with a common performance goal. ”
“The shares will be held in a trust of which all eligible employees will become beneficiaries and will receive an equal number of trust units linked to the Omnia shares,” the group said.
“1,025,700 Omnia shares have been purchased for the trust on the open market and are fully funded by Omnia, eliminating the need to repay loans before the shares have any value. In addition, participants will be entitled to receive dividends on these shares. It is also envisioned that the trust will allow future award to exist, as well as new participants, over time ”.
The group noted in its Meaning of statement that “employees who are beneficiaries of performance-based shares will not be eligible to participate in the broad-based share program” – this includes officers and management.
Palesa Mofokeng is a Moneyweb intern.