voestalpine Marks a New Era in Employee Ownership with Early Share Issuance on Its 25th Anniversary

voestalpine Marks a New Era in Employee Ownership with Early Share Issuance on Its 25th Anniversary

(IN BRIEF) The voestalpine employee shareholding scheme, recognized as one of Europe’s most exemplary models, was established in 2000 to secure a stable ownership structure by bundling voting rights within an employee foundation. Currently, employees hold over 14% of voestalpine AG’s voting rights. Traditionally, shares were only issued to Austrian employees when they left the company; however, this year marks a departure from that practice as shares not subject to tax-related holding periods will now be issued prior to the end of employment. This change ensures that the employees’ stake remains within the targeted range of 10% to 15% of voting rights. Developed as a joint initiative between Management and the Works Council during the Group’s transition to a listed company, the scheme is not only the largest of its kind in Austria in terms of share value and voting power, but also acts as a safeguard against hostile takeovers. With its 25th anniversary, the program now includes employees from eleven European countries, with around 26,000 active employees holding approximately 25 million shares as of March 31, 2024.

(PRESS RELEASE) LINZ, 19-Mar-2025 — /EuropaWire/ — For many years, the voestalpine employee shareholding scheme has been heralded as a model of excellence across Europe. Established in 2000, the program consolidates voting rights within an employee shareholding foundation, significantly contributing to the Group’s stable ownership structure while allowing employees to share directly in the company’s success. Currently, voestalpine employees collectively control over 14% of the voting rights in voestalpine AG. Traditionally, shares under the scheme were only issued to Austrian employees upon their departure from the company. However, this year, as a notable exception, shares that are no longer bound by tax-related holding periods will be distributed before the termination of employment. This change not only paves the way for future allocations but also ensures that employee shareholding remains consistently within the targeted voting rights bracket of 10% to 15%.

Recognized as the largest employee shareholding program in Austria in terms of both voting rights percentage and share value, the scheme is central to voestalpine’s long-term strategy for a sustainable ownership structure. “The continuous enhancement of our employee shareholding scheme is vital for securing a stable future for our company,” said Herbert Eibensteiner, CEO of voestalpine AG. “Our unique model, which positions employees as core shareholders, stands as a singular example in Europe and has inspired numerous other companies. With this recent amendment, we are protecting the legacy of our program and ensuring it continues to benefit both our employees and the company.”

Developed 25 years ago through a collaborative effort between Management and the Works Council during the Group’s transition to a publicly traded company, the scheme was designed to secure a robust core shareholder base. The arrangement originally set a target range for employee voting rights between 10% and just under 15%, a strategy that also serves as a defense mechanism against potential hostile takeovers. Given that the current voting rights share is just below the 15% ceiling, the decision to issue a portion of the shares—specifically those allocated until 2017 under the 5-year tax retention rule—prior to the end of the employment term is a celebratory exception marking the scheme’s 25th anniversary.

Moreover, the shareholding initiative has expanded beyond Austria. Today, employees from eleven other European countries also hold voestalpine shares. At the conclusion of the 2023/24 business year (March 31, 2024), approximately 26,000 active employees collectively owned around 25 million shares of voestalpine.

The voestalpine Group