Telenor introduces share-based option schemes for employees and management

The options have a lock-in period of three years, which will expire in stages: the lock-in period for one-third of the options ends after one year, an additional third in two years’ time and the final third after three years. The condition stipulated for exercising options is that the increase in the share-trading rate on the stock exchange related to total dividends must rise by at least 12%. How many options can be exercised depends on the share-trading rate on the stock exchange related to total dividends; for all options to be exercised, the stock exchange rate must increase by 20% annually. A ceiling has also been set on maximum earnings per option scheme per year. Should the market price rise by more than 100% in one year, the price for exercising options will be increased, so that profit will be limited to 100% per year.

In order to participate in this scheme, managers with long-term bonus agreements must waive the right to have these continue in 2001 and following years. Initially, the scheme will include 75 individuals. At the General Meeting to be held on 10 May, it will be proposed that shares required for the option scheme will be derived from a stock issue pursuant to the board’s authority to increase share capital as approved by the annual shareholders meeting of 10 November 2000.

At the same time, a programme will be established to sell shares to employees in Norway in companies where Telenor has a direct or indirect holding of more than 90%. This scheme will take effect in 2001, with an offer to all employees to purchase shares in the amount of either NOK 7,500 or NOK 15,000, including a tax-free cash rebate of NOK 1,500 to be deducted from the purchase price. In addition, performance-linked bonus shares will be distributed if the share price related to total dividends has increased by at least 12% during the period. Performance-linked bonus shares will be distributed in the amounts of NOK 2,500 and NOK 5,000 respectively, depending on the number of shares purchased. The value of the distributed bonus shares will be taxed as normal earned income.

At the general meeting to be held on 10 May, it will be proposed that shares required for the option scheme will be derived from a stock issue pursuant to the board’s general authority to increase share capital as approved by the annual shareholders meeting of 10 November 2000.