Engen, South Africa’s largest petroleum and convenience services company and a member of the Vivo Energy Group, is proud to announce the launch of its first-ever Employee Share Ownership Plan (ESOP). This landmark initiative marks a significant milestone in Engen’s history, reflecting the company’s unwavering commitment to employee empowerment and transformation through broad-based black economic empowerment (B-BBEE).
The Engen ESOP will be managed by the Engen Employee Trust, through which employees will initially own 5% of Engen Petroleum (Pty) Ltd. This ensures that through the Engen Employee Trust, employees have a direct financial stake in the company’s success. It also supplements the existing 21% ownership held by Phembani Group, a black-owned South African company and long-standing shareholder of Engen, such that today 26% of Engen is owned by historically disadvantaged persons. Vivo Energy owns the remaining 74%.
Engen is proudly a B-BBEE Level 1 certified company.
“We are thrilled to launch the ESOP, a groundbreaking initiative for Engen. This plan underscores our dedication to creating a more inclusive and empowered workforce while advancing our B-BBEE commitments,” commented Seelan Naidoo, Managing Director and CEO of Engen. “The ESOP allows our employees to share in Engen’s financial success, fostering greater alignment and teamwork across the organisation.”
Stan Mittelman, CEO of Vivo Energy, echoed Naidoo’s sentiment: “The ESOP demonstrates Engen’s leadership in fostering inclusivity and recognising the critical role employees play in driving the company’s success. By providing employees with a stake in the business through the Engen Employee Trust, we are setting the foundation for shared growth and long-term prosperity, aligning the Trust and its beneficiaries’ interests with those of shareholders.”
Key benefits of the ESOP include:
· No Upfront Cost to Employees: The plan is fully funded by Engen, requiring no contributions from participants.
· Dividend Participation: Employees will be eligible to receive dividends, aligning their interests with those of our shareholders.
· Equal Access: The ESOP treats all eligible employees equally, regardless of role or grade.
“This is a pivotal moment in Engen’s on-going transformation journey, and we are proud to recognise the dedication of our employees in this tangible and impactful way,” added Naidoo.
INFO SUPPLIED.
