Mittal takes major transformation step

VANDERBIJLPARK. – Up to 8 000 ArcelorMittal SA (AMSA) employees countrywide can benefit from the launch next month of the steel giant’s Employee Share Ownership Plan (ESOP), thereby also strengthening its transformational trajectory.
“Fully-fledged Equity ownership will follow this at the right strategic time but this represents a major step forward,” said Themba Nkosi, AMSA Human Resources head, at a press conference, announcing the scheme in Vanderijlpark this week.
The scheme, which opens on October 1, represents 4.7% of all AMSA shares and will facilitate Broad-Based Black Economic Empowerment (BBBEE) equity ownership in AMSA, according to Nkosi.
Participating employees will benefit financially from dividends or capital distributions to be declared during the 5-year length of the scheme, known as the Ikageng ESOP, provided they do not participate in any other share scheme. On expiry of the present scheme, employees can opt for cash value of trust units or keep the actual AMSA shares at no cost to themselves. The Ikageng ESOP – structured as a trust – is specifically aimed at middle-management and lower-level employees and excludes senior executives, according to Nkosi.He added AMSA would initiate an intensive internal communication and financial literacy engagement process to inform employees of their options in all official languages.Both black and white employees are eligible, he added.“The Ikageng Scheme demonstrates AMSA’s seriousness about BBB-EE and strengthens our pathway towards a Level 3 rating going forward,” Nkosi said.
His announcement follows an earlier commitment by AMSA CEO Paul O’Flaherty to accelerate the company’s transformation process and to shoulder its responsibilities as a corporate citizen.