Share-based incentive schemes
The Remuneration Committee prepares issues related to the CEO’s and management’s incentive and reward schemes to be decided by the Board.
Share-based incentive and reward schemes may require an express decision from the General Meeting unless the Board has been authorised by the General Meeting to decide on them.
The share-based incentive schemes are in force for the periods 2017 - 2019, 2018 – 2020, 2019 – 2021 and 2020-2022. The earnings period of a share incentive scheme is three years and the potential bonus is based on the company’s Total Shareholder Return (TSR). Bonus payment is dependent on the achievement of the Group’s cumulative profit target (EBT, earnings before taxes) during the earning period.
The purpose of the scheme is to combine the objectives of owners and key employees in order to increase the company’s capitalisation value, to commit the key employees to the company and to offer them a competitive reward system based on the company’s share price development and earnings.
Bonuses for each earnings period will be paid partly in the company’s free shares and partly in cash. The cash payment is made to cover the taxes and fiscal fees arising from the reward. In case the employment or service of a key employee ends before the bonus payment, as a rule no bonus is paid.
The Board recommends that the key employees within the scheme hold a substantial part of all shares they have received based on the scheme as long as the value of their holdings corresponds to their six months’ gross salary.
Additional information: Remuneration Stataments.