The Board of Directors of SRV Group Plc has decided on a new share-based incentive scheme for the Group’s key personnel. The purpose of the scheme is to combine the goals of shareholders and key individuals for raising the value of company as well as to strengthen key individuals’ commitment to the company. The scheme covers 26 key SRV personnel.
The key indicators for the scheme’s performance period 2014–2016 are the Group’s cumulative operating profit margin and return on equity. In addition, the rewards will be influenced by other business-specific indicators specified for 2014–2016.
When the indicators are fulfilled, the bonus will be paid partly in the company’s shares and partly in cash. Within the context of the scheme, a maximum of 588,000 SRV Group Plc shares and a cash payment for tax purposes corresponding to the value of the conveyed shares may be conveyed for no consideration to key individuals. The total recognised IFRS cost of the portion given as shares over the lifetime of the incentive scheme 2014–2018 will be approximately EUR 2.8 million, with the addition of the cash payment. The Black & Scholes model, applied in the pricing of options, has been used to calculate the theoretical cost of the shares, with the following assumptions: share price EUR 4.00, risk-free interest rate 0.86 per cent and volatility 32 per cent.
Personnel belonging to the scheme must hold at least half of the shares received on the basis of the scheme until 31 December 2017 and at least half until 31 December 2018. If a key individual’s employment ends during the above commitment period, he/she must surrender the shares for no consideration back to the company.
SRV Group Plc
Vice President, Communications
tel. +358 40 504 3321