The main owner of AutoWallis encourages the realization of the corporation’s strategy announced in spring by launching and Employee Share Ownership Plan (ESOP). The necessary 7.35% share portfolio has been provided by Wallis Asset Management free of charge. The management of AutoWallis and its subsidiaries can only receive the share, if the profitability targets are met.
In August, Wallis Asset Management Zrt. (WAM), the main owner of AutoWallis, decided to launch an Employee Share Ownership Program (ESOP) for the managers of the corporation and its subsidiaries (the Group). The program means no extra expenses or obligations for the company (including the other institutional and private investors outside of WAM) – besides the operational costs of the ESOP organization –, as the 7.35% (19,890,331-piece) share portfolio necessary for launching the program has been handed over by WAM free of charge (resulting in a decrease of its share to 72.36%). Thus, AutoWallis does not motivate the employees and the management of the Group from its own resources and on its own expense, so the ESOP increases the shareholder value not only directly but also indirectly via its incentive effect. At the beginning, 24 managers of the Group will take part in the 2 and 3 years long programs, who will only receive their AutoWallis shares (and the related dividends paid up until then), if the profitability targets derived from the long-term strategy are met, contributing to the long-term increase of the share value. The program shall be operated by an ESOP organization independent from the company. The ESOP is an effective asset for supporting the realization of the strategy, and it means further motivation for reaching the set goals.
In May, AutoWallis presented its strategy for the years until 2024 and its vision for 2029, in which it calculates with a robust growth of the company for the next 10 years, while its objective is to become a major mobility service provider of the Central and Eastern European region. The main owner of AutoWallis had indicated earlier that it would promote the realization of this strategy in several ways, and its aim is to considerably increase the shareholder value. Besides supporting the ESOP program, WAM had also memorably committed itself to return the dividends eventually to be paid by AutoWallis to the corporation in the form of a capital increase, as far as it is necessary for financing the subsequent growth, and acquisitions.