JSE-listed company Omnia announced the launch of its Broad-Based Employee Share Scheme on Tuesday, which will see all eligible permanent staff employed as of July 1 this year, receiving an equal number of fully funded shares with an initial three-year vesting period ending June 30, 2024.
The scheme, initially called the Omnia Management Share Trust (a JSE Schedule 14 compliant incentive scheme) was approved by the group’s shareholders on October 20, 2014 with the intention of creating ownership within the company for all qualifying permanent employees, and so that participants may benefit from any appreciation of the Omnia share price overtime.
The diversified chemicals group say the objectives of the scheme is “to allow all employees to participate in the group’s growth on a sustainable basis by becoming outright shareholders, irrespective of their geographical location”.
It also says that this initiative seeks to promote employee engagement, commitment and retention while aligning with the company’s shared goal of improving performance through enhanced individual and team productivity.
Omnia CEO Seelan Gobalsamy said the launch shows its commitment to strengthen Omnia’s overall positioning through its reset and growth strategy. “It is designed to be inclusive with all our employees becoming Omnia shareholders and accessing the opportunity to benefit from our future growth by aligning to a common goal of driving performance.”
“The shares will be held in a trust with all eligible employees becoming its beneficiaries and allocated an equal number of trust units linked to Omnia shares,” the group stated.
“1 025 700 Omnia shares have been acquired for the trust on the open market and are fully funded by Omnia, thereby removing the need for loans to be repaid before the shares accrue any value. In addition, the participants will be entitled to receive dividends on these shares. It is also envisaged that the trust will enable future allocation to exist, as well as new participants, over time”.
The group noted in its Sens statement that “Employees who are recipients of performance forfeitable shares will not be eligible to participate in the BroadBased Share Scheme” – this includes executives and the management.
Palesa Mofokeng is a Moneyweb intern.