Espoo, Finland, 2014-12-30 14:00 CET (GLOBE NEWSWIRE) -- SRV GROUP PLC STOCK EXCHANGE RELEASE 30 DECEMBER 2014, AT 15.00
SRV Group Plc’s Board of Directors approve multi-year incentive scheme for President & CEO
SRV Group Plc’s Board of Directors has approved a new share-based incentive scheme. The scheme applies to Juha Pekka Ojala, who becomes SRV Group Plc’s President & CEO on 1 January 2015. In the scheme, the rewards are linked to a rise in value of SRV Group Plc’s shares.
Based on the scheme, Juha Pekka Ojala will be given 600,000 acquisition rights, entitling him to acquire the number of SRV Group Plc shares corresponding to the acquisition rights at a price of EUR 3.1374 per share or to receive an amount of cash or shares or a combination of these corresponding to the benefit arising from exercising the acquisition rights and based on the development of SRV Group Plc’s share price. The company’s Board of Directors will make a decision on the manner of implementation each time separately. Under the terms of the scheme, half of the post-tax value thus obtained must be linked to SRV Group Plc’s shares. These shares are subject to a transfer restriction, which is valid for two years from the receipt of the shares. The acquisition rights can be exercised in five two-year long exercise periods, of which the first one begins on 1 January 2015 and ends on 31 December 2016 and the final one begins on 1 January 2019 and ends on 31 December 2020. During the each exercise period, the acquisition rights holder is entitled to exercise 120,000 acquisition rights.
On 29 December 2014, the theoretical market value of the scheme is approximately EUR 0.4 million. The Black & Scholes model, applied in the pricing of options, has been used to calculate the theoretical market value of the shares, with the following assumptions: share price EUR 3.12, reference share price EUR 3.1374, risk-free interest rate 0.37% and volatility 25%. The total recognised IFRS cost of the portion given as shares over the lifetime of the incentive scheme 2014–2022 is approximately EUR 0.4 million at most. If the benefit based on the development of SRV Group Plc’s share price is implemented in cash or in a combination of shares and cash, the amount of the IFRS cost related to the incentive scheme’s portion given as shares decreases accordingly and the amount payable in cash is added to the cost.
SRV Group Plc
Taneli Hassinen
Vice President, Communications
tel. +358 40 504 3321
taneli.hassinen@srv.fi
Further information:
Ilkka Pitkänen, CFO, tel. +358 40 667 0906, ilkka.pitkanen@srv.fi