AUGA group, AB progresses with its employee motivation scheme through share options

The Agtech company and organic food producer AUGA group, AB (hereinafter the Company) is progressing with its employee motivation scheme through share options. The Company has made a decision to allocate a further 2.18 million shares to the employees and members of management bodies of the Company and its subsidiaries (hereinafter Employees). In total, since 2019 the Company will have allocated 11 million shares to its Employees. It also plans to assign a further more than 3 million shares for the same purpose in the future.

The Company launched its first option programme in spring 2019. Almost 2.55 million of shares were allocated to Employees in the first stage and additional 2.23 million of shares in 2020, 2.38 million of shares in 2021, 1.65 million of shares in 2022.

Employees who signed the share option contracts in 2020, this year will have the right to vest them. As previously announced, the Company will increase its share capital by issuing new ordinary registered shares and will transfer them free of charge for the participants of share option programme 2020 after this decision is approved at the Ordinary General Meeting of Shareholders to be held on April 28, 2023.

The programme is being continued this year with the allocation of a further 2.18 million of shares.

A motion to approve an additional 2.24 million of shares for future allocation, so that total unallocated number of Company shares intended for the option programme would reach 3.04 million of shares, has been included in the agenda for the upcoming regular general meeting of the shareholders of the Company.

If all accumulated reserves are allocated to employees and new shares are issued, they will amount to 6.12% of the equity of the Company.

"Employees who have signed contracts of stock options become more involved in the group's activities, improvement of its results, feel motivated and become more loyal. Research conducted in AUGA group companies shows that 92 percent of employees who have signed contracts of stock options feel and understand their role as professionals in the group - knowing that they have contracts of share options is not only a pleasant evaluation for them, but is also a motivation to strive for better results”, says Kęstutis Juščius, CEO of AUGA group, AB. The Company's share option programme is aimed at increasing Employee motivation and engagement. Shares are primarily granted to the Employees who make the highest impact on the success of the Company’s operations.

Under existing agreement conditions, Employees are entitled to receive a specified number of Company shares after a period of 3 years. These shares are distributed to the Employees free of charge and funded by a Company reserve that has been formed for that purpose.

CEO Kęstutis Juščius