Thumbs Up to Employee Share Ownership Plan
By Mpume Mthembu
September 2007 saw Hulamin employees accepting the company's offer to become beneficiaries of a newly established share ownership trust. The Employee Share Ownership Plan (ESOP), known as Siyaphambili (together we are moving forward), is part of the Broad-Based Black Economic Empowerment (BBBEE) transaction concluded at the end of 2006, which includes the Imbewu and Makana consortia who were officially signed on as Hulamin's partners.
When introducing the ESOP scheme, Chief Executive Alan Fourie listed a few key success factors including the contribution made by employees over the years. "There is a depth of experience and expertise within the company. Many of our employees have been here for 20 years, 30 years and that depth of capability has been instrumental is getting us where we are today, " he explained, adding that the scheme provides a once-in-a-life-time opportunity for most of the employees to improve their standard of living. "The benefits to each employee are, however, linked to company performance and it's up to everyone to influence the extent of those benefits," he said.
As a result of the BBBEE transaction, employees stand to own up to 5% of the listed share capital after the vesting period. The holdings of the Imbewu and Makana consortia have been planned up to 10% of the equity, totaling up to 15%, for the BBBEE transaction.
Gus Hornsby who has been with the company for 25 years explains what the ESOP means to him. "We are looking forward to be part of the new Hulamin, to drive this company forward and in so doing address all societal problems that we ourselves have been facing all this time," he said.
12 October 2007
