Invalda INVL, one of the Baltic region’s leading asset management groups, will offer stock incentives to employees of Invalda INVL and companies in which it owns more than half of shares.
It is proposed that the shareholders of Invalda INVL at their meeting on 30 April approve rules for granting equity incentives and also approve that, in light of 2017 results, options contracts can be signed with employees of its businesses, granting them the right in the year 2021 to acquire up to 60 thousand Invalda INVL shares at a price of EUR 1. Invalda INVL’s consolidated equity value per share at the end of 2017 was EUR 5.53.
“We seek to maximally align the interests of clients, employees and shareholders. The success of an asset management business is inseparable from the professionalism of the people who work there and their motivation to go after the best long-term results. This incentive programme gives members of the team favourable opportunities to become shareholders and get part of the value created by common efforts,” said Darius Šulnis, the president of Invalda INVL.
Shareholders also intend at the meeting to approve 2017 operating results and to elect the board for four years. The current board members – Alvydas Banys, Indrė Mišeikytė and Darius Šulnis – are proposed for re-election.
It is proposed not to pay dividends to shareholders, but to approve the possibility for the company to acquire its own shares. A minimum share buy-back price of EUR 1 is proposed, and a maximum equal to the consolidated equity value per share.
“We conduct purchases of our own shares every year, giving investors freedom to choose. Unlike with dividends, where all shareholders get equal pay-outs, a share buy-back allows each investor to sell whatever number of shares they want or, on the contrary, to maintain the whole investment they have,” Darius Šulnis said.
Invalda INVL’s equity at the end of 2017 was EUR 63.996 million, or 21.5 per cent more than at the end of 2016 (when it was EUR 52.681 million). Equity per share increased 21.6 per cent in the year to EUR 5.53. In 2017 the Invalda INVL group had an audited net profit of EUR 11.307 million, 2.4 times the 2016 figure of EUR 4.770 million.
Invalda INVL, operating since 1991, is one of the leading asset management groups in the Baltic countries. Companies the group owns in Lithuania and Latvia manage more than 20 mutual and pension funds (2nd and 3rd pillar), alternative investments, individual portfolios, private equity, private debt and other financial instruments. The group’s companies have more than EUR 600 million of assets under management, entrusted to them by over 190 000 clients in Lithuania and Latvia as well as international investors. The shares of Invalda INVL have traded on the Nasdaq Baltic securities exchange since 1995.