With reference to the announcement published earlier today please
note that due to an incor-rect statement of the nominal value of the
share options granted to the Executive Board in 2007, we attach a
corrected version of the General guidelines governing incentive pay
(share option programme).
Yours sincerely,
The East Asiatic Company Ltd. A/S
(A/S Det Østasiatiske Kompagni)
General guidelines governing incentive pay (share option programme)
1. For a number of years EAC has used a share option programme for
the EAC Executive Board and certain other Senior Executives and key
employees within the EAC Group. The members of the EAC Supervisory
Board are payed a fixed annual fee and, consequently, the share
option programme does not apply to the members of the Supervisory
Board. The EAC Executive Board, the Senior Executives and the key
employees concerned are hereinafter refered to as the Senior
Executives.
2. The objectives of the share option programme are
- to enhance focus on creating shareholder value by motivating the
Senior Executives to make decisions and in all matters act in
accordance with the best interest of the shareholders
- to create a direct link between the renumeration of the Senior
Executives and share price gains and
- to create long-term loyalty and retain the Senior Executives within
the Group.
3. The existing share option programme was approved at EAC's Annual
General Meeting on 27 March 2007. According to the programme EAC
shares of a total nominal value of DKK 23,380,000 (equal to about two
per cent of EAC's share capital) shall be granted to the Senior
Executives (approx. 40 persons) over a period of three years. The
number of options to be offered to the individual Senior Executive,
is determined by the Chairman of the Supervisory Board in accordance
with an authorisation given by the other members of the Supervisory
Board. In 2007 share options with a total
nominal value of DKK 6,860,000 were offered to the Senior Executives,
including DKK 700,000 in share options to the Executive Board.
4. The options are offered to the Senior Executives free of charge
and consist of a right for the Senior Executives to purchase a
specific number of EAC shares in the future at a fixed price per
share. The purchase price shall be the average of the official share
price quoted on the OMX Nordic Exchange Copenhagen during the first
ten trading days after EAC has published its Preliminary Statement of
Annual Results in the year when options are granted plus ten per
cent. The Senior Executives can only exercise the options within a
period of three to six years after the date on which the options were
offered. After expiry of the six-year exercise period, any option
that has not been exercised shall lapse.
5. The main condition for offering share options to the Executive
Board is that the EAC's financial and strategic objectives in the
discretionary view of the Supervisory Board are strengthened by such
an offer. The granting of share options to the other Senior
Executives shall be determined by the Supervisory Board based on
similar discretionary considerations.
6. As calculated according to the Black & Scholes method and
according to the IFRS, the estimated current value of the share
option programme for 2008 and 2009 is DKK 31 m. as per 25 March 2008.
To the extent share options are offered, this information shall be
included in EAC's Annual Report stating the number of share options
offered to the Executive Board and other Senior Executives
respectively within the EAC Group.
For additional information, please contact:
President & CEO Niels Henrik Jensen
+45 3525 4300
+45 2023 2188 (mobile)
nhj@eac.dk
Group CFO Michael Østerlund Madsen
+45 3525 4300
+45 2041 0957 (mobile)
mom@eac.dk
www.eac.dk
This English version is provided for convenience only and in case of
discrepancy the Danish version shall prevail.
