Grant of share options and performance shares to members of the Board of Management and key employees
ALK (ALKB:DC / OMX: ALK B / AKABY / AKBLF):
Share option programme
According to the guidelines for incentive payments adopted at the Company's annual general meeting on 13 March 2019, the Board of Directors has passed a resolution to grant a total of 25,392 share options, comprising 13,229 options to the members of the Board of Management and 12,163 options to a group of key employees. The share option programme is subject to the fulfilment of economic key indicators with a threshold below which there will be no payout, and with the opportunity to perform above target. In case of performance above target, a defined multiplier is used that can increase the payout by up to 100%.
The options can be exercised during the period from 1 March 2022 to 1 March 2024 during the trading windows following the release of annual and interim reports. If the option holders have not exercised their options within the period specified, the options will lapse without any compensation to the holders.
The exercise price of the options has been set at DKK 1.072 each, corresponding to an average of the closing prices of the Company’s shares on NASDAQ Copenhagen during the period 14 to 20 March 2019 (both days included). To this should be added annual interest at the rate of 2.5%, which will be added the first time on 1 March 2020. The exercise price of the options will be adjusted by dividends, if dividends deviate from DKK 0 per share.
The market value of the adopted option plan of 25,392 options is approximately DKK 6.9 million applying the Black & Scholes model for valuation of options. The determination of the value is based on an assumed exercise price of DKK 1.154, an annual dividend distribution of DKK 0 per share, a volatility rate of 32% p.a. and a risk-free interest rate of minus 0.44% p.a.
Under the international financial reporting standards (IFRS), the incentive plan will be recognised in the income statement in the respective functional areas over the vesting period.
Performance share programme
The Board of Directors has passed a resolution to grant performance shares in accordance with the guidelines for incentive pay adopted at the Company's annual general meeting on 13 March 2019. The scheme comprises a total of 14,236 performance shares, including 2,879 shares to the members of the Board of Management and 11,357 shares to a group of key employees. The market value of the performance shares is approximately DKK 14.3 million, calculated on the basis of an average of the closing prices of the Company's shares on NASDAQ Copenhagen during the period 14 to 20 March 2019 (both days included).
The final transfer of ownership of the performance shares takes place three years after the grant (2022), and is subject to the fulfilment of economic key indicators with a threshold below which there will be no payout, and with the opportunity to perform above target. In case of performance above target, a defined multiplier is used that can increase the payout by up to 100%.
Under the international financial reporting standards (IFRS), the incentive plan will be recognised in the income statement in the respective functional areas over the vesting period.
The grant of share options and performance shares does not change the Company’s financial forecast.
No share options or performance shares have been granted to members of the Board of Directors.
ALK-Abelló A/S
For further information please contact:
Steen Riisgaard, Chairman of the Board of Directors, tel +45 4574 7576
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