Skip to main content

Eimskip: Allocation of share options

Written by Customer Service on . Posted in Public Companies.

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.

Attachments

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.