SKEL fjárfestingafélag hf.: Allocation of stock options

SKEL’s Board of Directors has approved the granting of stock options to certain employees, covering up to 10,801,254 shares in the company.

The stock option agreements are designed to align the long-term interests of the company and its employees. The terms of the agreements comply with the stock option plan and remuneration policy approved at the company’s Annual General Meeting on 7 March 2024. At this meeting, shareholders authorized the Board of Directors to grant stock options to employees, excluding key management personnel who had already received stock options under the stock option plan approved at the Annual General Meeting on 10 March 2022.

• The exercise price of the stock options is ISK 16.956 per share, which reflects the weighted average trading price of the company’s shares on Nasdaq Iceland over the ten full trading days preceding the issuance of the options. This price will be adjusted downward for future dividends and other distributions to shareholders and upward by an annual interest rate of 3% in addition to the risk-free rate, calculated from the issue date until the first exercise date for each exercise period.
• The vesting period is three years from the grant date. One-third of the options become exercisable immediately after the grant date, an additional one-third becomes exercisable one year later, and the final third becomes exercisable two years after the grant date.
• The option shares must be paid for in cash upon exercise.
• Fifteen percent of the option holder’s realized profit, net of all taxes and mandatory payments, must be retained in the form of company shares until the holder is no longer employed by SKEL.
• Stock options generally expire prior to the end of the vesting period if the holder’s employment with the company is terminated.

Following this grant, the total number of outstanding stock options granted to SKEL’s key employees amounts to 107,602,943 shares, representing approximately 5.73% of the company’s share capital.

For further information, please contact Ásgeir Helgi Reykfjörður Gylfason, CEO, fjarfestar@skel.is