The governance model of ESO and Ignitis Gamyba has been optimised: the Boards now carry out supervisory functions

The Supervisory Board and the Management Board of an international energy company Ignitis Group decided to replace a two-tier management model applied in the Group’s main subsidiaries Energijos Skirstymo Operatorius (ESO) and Ignitis Gamyba with a one-tier management model, i.e., to remove the Management Boards made up of employees and instead to form Boards with a supervisory function, and approved new Board members.

ESO Board with a supervisory function comprises 6 members: 2 independent members, 2 shareholder's representatives, 1 civil servant and 1 employee representative. Ignitis Gamyba Board will comprise 5 members: 2 independent members, 2 shareholder's representatives, 1 civil servant.

The following ESO Board members are responsible for the following functions:

• financial management – independent member Nerijus Datkūnas;
• organisational development – independent member Eligijus Kajieta;
• strategic planning and management – shareholder's representative Živilė Skibarkienė;
• energy distribution and regulation – shareholder's representative Darius Maikštėnas;
• business continuity and security – civil servant Jonas Skardinskas;
• employee representation – Dalia Jakutavičė.

The following Ignitis Gamyba Board members are responsible for the following functions:

• financial management – independent member Edvardas Jatautas;
• organisational development – independent member Mindaugas Šeštokas;
• energy production and regulation – shareholder's representative Vidmantas Salietis;
• strategic planning and management – shareholder's representative Mantas Mikalajūnas;
• business continuity and security – civil servant Vilmantas Vitkauskas.

“Members starting the new terms of the Boards with a supervisory function will ensure business continuity of the subsidiaries and the implementation of their long-term goals” said Darius Maikštėnas, CEO of Ignitis Group.

The one-tier governance model applied in the subsidiaries will ensure simpler but, at the same time, more effective governance, which continues to meet the highest standards of governance, speedy decision-making, fast communications, and active involvement of independent members.

This change will further strengthen the transparency and openness, timely and accurate disclosure of information about the Group and its subsidiaries, and the accountability of the management and supervisory bodies in Ignitis Group.

It was previously announced that, given the different ends of term of the collegial bodies of the subsidiaries, the replacement of the two-tier governance model with a one-tier governance model will be carried out in two stages. The governance model of the other subsidiary Ignitis will be replaced in the second stage by Q2 of 2023.