Eimskip: Allocation of share options
March 29 2022 - 3:19PM
Eimskip: Allocation of share options
The Board of Directors of Eimskipafélag Íslands hf. decided
today to allocate share options to certain key employees of the
company globally amounting to 1,839,600 shares, which constitutes
1.05% of Eimskip’s share capital when the share option plan was
approved. Thereof 1,090,620 was allocated to the CEO and Executive
Management and the respective agreements signed today.
The share option plan sets forth a long-term incentive program
intended to align the interests of the CEO, Executive Management
and other key employees of the company, on one hand, and its
shareholders, on the other hand, with a system which takes capital
costs into account and adjusts for dividend payments, and as such
seeks the equality of share option holders and shareholders. The
terms and conditions of the share option agreements are in line
with the share option plan approved at the Company’s Annual General
Meeting on 17 March 2022.
The main content of the share option agreements is as
follows:
- Exercise price of the share options is ISK 546
pr. share, i.e. the Company’s average share price in ISK for the
last 10 business days, as recorded on Nasdaq Iceland prior to the
allocation date. The exercise price shall be adjusted (for
reduction) for future dividend payments and corresponding capital
allocation to the shareholders from the Company’s assets on a
krona-to-krona basis. The exercise price shall also be adjusted
(upwards) with 3% annual interest, added to risk free interest
until the first day of each exercise period.
- Vesting time is three (3) years from the date
of allocation.
- Exercise period is immediately upon the
conclusion of the minimum vesting period (3 years from the date of
allocation), whereas the option holder can exercise 33.33% of his
total options (period 1), a year thereafter, the option holder can
exercise 33.33% of total options (period 2) and a year thereafter,
the option holder can exercise 33.33% of total options (period
3).
- The CEO, Executive Management and other key employees must
retain shares amounting to the value of their net-profit from the
exercise of their options, with taxes deducted, until the following
amounts are reached, measured in the value of their shareholding in
the company as a multiple of base salary: CEO 12 times monthly
salary, Executive Management and other key employees 6 times
monthly salary.
- Generally, the share options shall become void if the holder’s
employment with the company is terminated.
- Should there be a change of control of the Company, cf. Art.
100 of Act, No. 108/2007, on takeovers, all outstanding share
options shall vest immediately (acceleration of vesting
period).
- The Company shall not be permitted to issue a loan or security
of any sort in relation to the share option plan.
Following the allocation of the share options the total
outstanding share options which Eimskip has allocated to key
employees is 1,839,600 or around 1.05% of the Company’s share
capital.
The total cost, according to the Black & Scholes model,
regarding the share option agreements hereby announced is estimated
to be around ISK 170 million over next six years.
See attachments for information on share options allocated to
the CEO and the Executive Management.
Further information is provided by Edda Rut Björnsdóttir,
Executive Vice President Human Resources & Communication, tel.
+354 825-3399 or investors@eimskip.is.
- 2022.03.29_VT
- 2022.03.29_BJE
- 2022.03.29_BOK
- 2022.03.29_BTM
- 2022.03.29_DIJ
- 2022.03.29_EDDA
- 2022.03.29_HILK
- 2022.03.29_HPV
- 2022.03.29_MBE
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