SRV Group Plc Stock Exchange Release 17 February 2011 at 5.15 p.m. EET
The Board of Directors of SRV Group Plc has decided on a new long-term share-based incentive plan for the SRV Group key personnel.
The Plan is directed to approximately 70 employees. The Plan is valid for the years 2011 – 2016, and the potential reward from the Plan is based on the increase in SRV Group Plc’s share price. The incentive plan is aimed to recruit, commit and motivate key personnel. The plan aligns the interests of the employees involved with the interests of the shareholders as well as ties the key employees to the company and share ownership. The plan is a continuation to SRV’s share-based inventive plan 2008-2010.
The Plan is carried out as share bonus rights. Their value is based on the price development of SRV’s shares. The reference rate used is the volume weighted average quotation of January 2011 (EUR 6.81/share). The annual dividends will be deducted from the reference price. The maximum total amount of bonus rights granted is 2,000,000.
There are four series of share bonus rights, their exercise periods are:
Serie A: 15 March 2012 – 15 March 2013
Serie B: 1 January 2013 – 15 March 2014
Serie C: 1 January 2014 – 15 March 2015
Serie D: 1 January 2015 – 15 March 2016
According to the incentive plan terms half of the value increase calculated from the price development of SRV’s share is given to the key employees in SRV’s shares and half is paid in cash for taxes arising from the bonus. There is a restriction concerning the transfer of shares and a restriction period. If the employment of the person included in the plan ends during the period, he/she must return the shares granted to the company without compensation.
The theoretical market value of the plan is around EUR 2.3 million as of 16 February 2011. The theoretical market value is calculated by the Black & Scholes -model used for pricing options with the following criteria: share price EUR 7.43, reference share price EUR 6.81, risk-free interest rate 2.5% and volatility 33 per cent.
– The aim of the incentive plan is to commit the key personnel to develop the company and to reward them for the share development. The implementation period of SRV’s development projects is several years, therefore a long-term share-based incentive plan is an excellent reward system for SRV, says Jukka Hienonen, President and CEO.
SRV GROUP PLC
President and CEO
Katri Innanen, Chief Legal Counsel, tel +358 400 678 898
Distribution: NASDAQ OMX Helsinki, main media