357 employees of KN (AB “Klaipėdos nafta”), the operator of oil products and liquefied natural gas (LNG) terminals, became the shareholders of the company. Their share of the total number of the KN shares amounts to 0.2%. KN is the first state managed company in the country to pay part of the reward to its employees in shares.
The KN shares paid to the company’s employees cover up to 50% of the annual award for the results achieved in 2018. This decision the company made in order to enhance the employees’ involvement in the pursuance of the company’s long-term goals and to promote their responsibility for common operational results as well as to enhance the company’s competitiveness in the labour market.
“While searching for ways to increase the employees’ motivation and involvement, we align ourselves with the leading companies and monitor the best international practices. Our decision to issue shares to the employees was adopted in order to make our employees feel as the real owners of the company, who contribute to the long-term success of the organisation,” claimed KN CEO Mindaugas Jusius.
Over the last two years the KN motivational system has offered more changes to the company’s employees. This year KN employees could use part of their annual reward for the purposes of long-term accumulation – the third pillar pension funds. Moreover, for a number of years, KN employees have been insured with additional health insurance.
“The change in the motivational system is part of the consistent modification of the KN organisational culture. Our aim is to enhance the company’s competitiveness in the labour market by maintaining and attracting talents. KN focuses on international activities and has ambitions aims, in order to achieve which, we have to unite and maintain a team of ambitious, energetic, competent and engaged employees by using the solutions of the most relevant remuneration and motivation,” emphasised Mindaugas Jusius.
The rules of the issuance of the shares of KN were approved at the general shareholders’ meeting on 8 November 2018. For the implementation of the long-term programme, a reserve for own shares from the undistributed profit, which may not exceed 1.5% of the company capitalisation, must be formed. The size of the reserve will be linked to the internal and long-term aims of the company and its human resources policy.
According to the company’s remuneration guide, the annual reward to the company’s employees will be granted when the company achieves its business goals, and the size of the reward will be established with regard to the employees’ personal achievements within the company and the way they were achieved by following the values of KN.
Currently the company employs a staff of 384 people.
KN shares are included into “NASDAQ OMX Vilnius” Baltic stock exchange listing. On May 8, the closing price of the Company’s shares amounted to EUR 0.433. On 31 December 2018, all shares belonged to 2 191 shareholders.
