Governance
Ignitis Group is among the leaders in corporate governance of state-owned enterprises in Lithuania. It has been awarded the highest rating in the large company category of the Good Corporate Governance Index compiled by the Governance Coordination Centre.
The Group’s governance framework is based on the most advanced international and national practices, OECD recommendations, and the Corporate Governance Code for the Companies Listed on Nasdaq Vilnius.
Governance framework
Ignitis Group's governance is based on the company’s Articles of Association and the Description of the Guidelines on Corporate Governance of the State-Owned Group of Energy Companies approved by the order of the Minister of Finance. Additionally, the Ministry of Finance’s Letter of Expectations sets out the majority shareholder’s expectations regarding the activities of Ignitis Group.
Shareholders’ rights and General Meetings of Shareholders
Our shareholders exercise their rights at the General Meeting of Shareholders. The General Meeting of Shareholders is the highest decision-making body of the parent company and adopts resolutions in accordance with the Law on Companies of the Republic of Lithuania. Each shareholder who has been entered in the register of shareholders of the parent company before the record date (the fifth day before the General Meeting of Shareholders) has the right to attend the General Meeting of Shareholders and exercise his/her power of decision in the matters falling within the competence of the General Meeting of Shareholders.
Notices about the convening of a General Meeting of Shareholders, including all the relevant and necessary information, the annexes of items on the agenda and the resolutions of the General Meeting of Shareholders are published on the website of the parent company. The notices about the meetings are also published through the Nasdaq Vilnius and London Stock Exchange notice publication systems.
Supervisory and management bodies
Management Board and CEO
The Management Board is a collegial management body. The Management Board of AB “Ignitis grupė” comprises five members who are elected for a five-year term. The Management Board elects the Chair of the Management Board from among its members, who is appointed as the CEO of the company. Management Board members are responsible, within the areas of their competence, for ensuring the proper functioning of the Group and overseeing respective areas of activity.
Supervisory Board
The Supervisory Board is a supervisory collegial body, which is elected by the General Meeting of Shareholders for a four-year term. The Supervisory Board of AB “Ignitis grupė” comprises nine members: six independent members and three civil servants. The Supervisory Board elects its Chair from among its members.
Audit and Risk Committee
To ensure the effective performance of its functions and duties, the Supervisory Board establishes committees. The Audit and Risk Committee operates in the following areas of oversight: financial reporting and sustainability reporting, external audit and assurance of sustainability reporting, internal audit, risk management and internal controls, business resilience and business continuity, and compliance. The Audit and Risk Committee also assesses and analyses other matters referred to it by the Supervisory Board.
Nomination and Remuneration Committee
To ensure the effective performance of its functions and duties, the Supervisory Board establishes committees. The Nomination and Remuneration Committee operates in the following areas of oversight: Group Remuneration Policy, nomination of the members of the Management Board and the CEO and evaluation of their performance, assessment of candidates for the positions of members of the supervisory and/or management bodies of AB “Energijos skirstymo operatorius”, AB “Ignitis gamyba”, UAB “Ignitis” and UAB “Ignitis renewables”, which are directly controlled by the company (“Four Subsidiaries”), succession for the Management Board and the CEO as well as the CEOs of the Four Subsidiaries, monitoring of the Group governance and social responsibility insofar as they relate to the Committee’s areas of activity defined above. The Nomination and Remuneration Committee also assesses and analyses other matters referred to it by the Supervisory Board.
Sustainability Committee
To ensure the effective performance of its functions and duties, the Supervisory Board establishes committees. The Sustainability Committee operates in the following areas of oversight: environmental, social sustainability, sustainability governance, and sustainability statement. The Sustainability Committee also assesses and analyses other matters referred to it by the Supervisory Board.
Other relevant information
Operational documents
Ignitis Group is determined to act justly and according to national legislative requirements and international standards. All activities of the Group are regulated by our policies.
Governance report
Integrated annual reports of the Group comprise all the relevant reports.
Remuneration
We are dedicated to attracting and retaining top talents who have a global vision and develop innovations. Our remuneration system is based on transparency.