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Copenhagen Stock Exchange - Focus: Information About Option Based Compensation

Date 01/07/2003

In Focus no. 55 Associate Professor, Ph.D. Ken L. Bechmann, Department of Finance, Copenhagen Business School, and Securities Analyst Thomas Winther Sørensen, Carnegie Bank make recommendations to the listed companies on how to ensure that the quality of the information about option based compensation - the so-called incentive schemes - is brought in line with the growing popularity of the schemes.

In the article the authors describe the information required to meet the current rules and regulations and to satisfy the demands of the users of financial statements. Moreover, Bechmann and Winther Sørensen offer some specific suggestions about how the listed companies may adequately disclose the contents of the option based incentive schemes.

To support the suggestions, the authors have prepared two forms that the listed companies may use to standardise current and annual status reports on their incentive schemes.

Read the article "Information about option based compensation" in Focus no. 55 at the Copenhagen Stock Exchange's website www.cse.dk.