ACWA Power, a leading developer, investor, and operator of power generation and water desalination plants, announced the results of its Extraordinary General Meeting held on Monday, where shareholders approved a strategic move aimed at enhancing the work environment and motivating its workforce. Key decisions included approving the company's purchase of up to 1,190,000 of its own shares, to be allocated to a long-term employee incentive program.
Background of the decision and its strategic importance
This move comes as part of ACWA Power’s ongoing efforts to solidify its position as one of the leading talent attractors in the global energy sector. Equity incentive programs are a modern management tool designed to align employee interests with those of shareholders, making employees partners in the company’s success and growth. By offering them the opportunity to own shares in the company, they are motivated to exert maximum effort to achieve strategic goals, which positively impacts financial performance and the share price in the long term. These programs are particularly important in competitive sectors such as renewable energy, where attracting and retaining specialized talent is crucial for success.
Details of the decision and implementation mechanism
According to a statement issued by the company and published on the Saudi Stock Exchange (Tadawul) website, the acquisition will be financed through the company's own resources, reflecting its strong financial position and its ability to fund its strategic initiatives without external financing. The General Assembly authorized the Board of Directors to complete the acquisition within a period not exceeding 18 months from the date of the resolution. Following the acquisition, the company will hold the shares as treasury shares for a maximum of seven years, after which they will be allocated to eligible employees according to the terms and conditions of the program, which will be determined later by the Board of Directors, including the allocation price per share.
Expected impact at the local and international levels
Domestically, this decision reinforces ACWA Power’s position as a key player in achieving the goals of Saudi Vision 2030, particularly in human capital development, economic diversification, and the transition to clean energy. It also sends a strong message of confidence to investors in the Saudi financial market regarding the company’s future vision and its management’s belief in the true value of its shares. Internationally, as a company with a broad global portfolio of projects spanning the Middle East, Africa, and Asia, adopting such advanced corporate practices enhances its global reputation and makes it more competitive in international markets. Furthermore, this step aligns with best global governance standards that encourage linking executive performance to the company’s long-term success.
In addition to approving the equity program, the assembly's resolutions included amendments to some articles of the company's articles of association and the appointment of an external auditor, measures aimed at strengthening the corporate governance framework and supporting the company's operational processes.
