Ignitis Group will motivate managers to achieve long-term strategy goals according to good international practice

• The Supervisory Board of the international energy company Ignitis Group approved the new long-term incentive of  manager system, which is established in accordance with the good practice to link achievement of long-term strategy goals with the motivation by means of Company’s shares.
• The Ignitis Group Board Members and the Chief Executive Officers (CEO) of four companies of the Group – ESO, Ignitis, Ignitis Gamyba and Ignitis Renewables – will be offered shares options, which will be provided if the long-term strategy goals (indicators) related to the strategy plan of 2020–2023 were achieved.
• The new system will strengthen the motivation of the managers to increase the share value of Ignitis Group and returns for investors by implementing the strategy goals of the Group.

The Supervisory Board of the international energy company Ignitis Group, in accordance with the best international practices, approved the new long-term shared-based incentive programme for the senior management of Group companies in order to align compensation of the managers with the achievement of sustainable and long-term strategy goals.  Senior management share awards will depend on the results of achieved long-term goals as formally stated in the business plan.

The new motivation programme for the managers of the companies of Ignitis Group approved according to the good practices of listed companies ensures that long-term strategic goals would be linked to the motivation of the managers of the companies. This not only helps managing risks of focus to short-term goals, but also increases the motivation of the managers to be loyal and increase the share value of the Company. At the same time, it ensures lower turnover of top-level management because shares can be obtained only after achieving the long-term goals of four next years.

The need to reform the previously effective remuneration structure of Ignitis Group management, which lacked long-term promotion of management, was expressed by investors during the preparation of the Initial Public Offering (IPO) of Ignitis Group. According to the investors, a part of remuneration provided in the form of shares of the Company would increase long-term retention of employees of the Company.

The managers are tasked with ambitious long-term goals to create as much return for the investor as other most valuable energy companies not just in the scope of Lithuania, but according to the average index of Eurostoxx Utilities; to increase the installed green energy capacity of Ignitis Group to 1.6 GW; to reach the adjusted EBITDA indicators and reduce CO2 emissions according to the CO2 management plan. 

The new long-term promotion with shares programme will apply to Ignitis Group Members of the Board and the CEOs of four companies of the Group – ESO, Ignitis, Ignitis Gamyba and Ignitis Renewables.

The managers, according to the Option Agreement concluded this year, will be able to implement their right to own shares of the Group in 2024. The Supervisory Board of Ignitis Group will evaluate what percentage was achieved of the 2020–2023 strategy goals and will determine what number of shares will be allocated to the managers.

In the future the opportunity to obtain shares of the Company will be arranged not only to the managers, but to all employees of Ignitis Group as well.

About Ignitis Group:  

Ignitis Group is one of the largest international utilities and renewable energy companies in the Baltic region. Its core business activities are operating electricity and gas distribution networks, as well as expanding green generation portfolio. The Group also manages strategically important flexible generation resources, offers customers solutions of solar energy, e-mobility, energy efficiency and other innovative energy-smart services for households and businesses.  Ignitis Group operates in its home markets – Lithuania, Latvia, Estonia, Poland and Finland – as well as evaluates opportunities in other countries on the energy transition path.