Engen, South Africa’s largest petroleum and convenience services company, announced in a statement on Sunday the launch of its first-ever Employee Share Ownership Plan (ESOP).
Engen said that this landmark initiative marks a significant milestone for Engen’s history, reflecting the company’s unwavering commitment to employee empowerment and transformation through broad-based black economic empowerment (B-BBEE).
Engen added that 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 said that they are proudly a B-BBEE Level 1 certified company.
Seelan Naidoo, Managing Director and CEO of Engen, said they 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. 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, said that 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.”
Naidoo said that 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 ongoing transformation journey, and we are proud to recognise the dedication of our employees in this tangible and impactful way,”
BUSINESS REPORT