With reference to the announcement published earlier today please note that due
to an incorrect 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.
