Tashkent, Uzbekistan (UzDaily.com) — In the "Uzbekistan-2030" strategy, one of the goals for ensuring the well-being of the population through sustainable economic growth is to further enhance the country’s investment attractiveness and accelerate the development of the securities market.

As part of the ongoing efforts to implement the Presidential Decree of the Republic of Uzbekistan from 2 September 2023, No. PP-291 "On Additional Measures for the Development of the Capital Market," the National Agency for Prospective Projects has developed and approved the Regulation on the Procedure for Introducing Employee Stock Ownership Plans (ESOP), registered by the Ministry of Justice on 8 October 2024, under No. 3559.

The Regulation aims to implement the practice of Employee Stock Ownership Plans (ESOP), which allows employees of a company to participate in its profits and equity. This Regulation has been developed based on the experiences of the USA, the UK, Spain, the Russian Federation, Kazakhstan, and other countries.

The Regulation establishes the basic conditions for employees to acquire shares of joint-stock companies or transfer a specific package of shares under option agreements.

To implement the ESOP practice, a stock ownership plan for employees is approved at the general meeting of shareholders, taking into account the requirements of the Regulation.

Joint-stock companies with a state share of 50% or more are required to develop and adopt an employee stock ownership plan.

The Regulation defines the process for employees to acquire shares through the purchase of shares offered by the company that were previously acquired for employees on the secondary market, as well as shares under option agreements, including in the form of bonuses.

The Regulation outlines the rules for employees to acquire shares, the process for concluding option agreements, and the mechanisms for bonuses.

It is expected that the rules established in the Regulation will positively impact the relationships between employees and joint-stock companies, as employee-shareholders will have a vested interest in the stable operation of the company and its productivity and profitability. Employees participating in the ESOP may access additional sources of income and savings and have the opportunity to participate in the management of the company. In turn, joint-stock companies will be interested in long-term employment relationships with employees who have made significant contributions to the development of the company. ESOP can enhance employee motivation, improve their engagement in the company’s activities, and increase its competitiveness.

Thus, the approval of this document by the Agency is an important step towards improving the living standards and welfare of citizens, as well as contributing to the development of the securities market in Uzbekistan.