The purpose of the stock option scheme is to attract and retain the best employees as well as to provide all employees with an opportunity to take part in the value that is being created for the company's shareholders. The scheme represents a good incentive structure at a reasonable cost.
The options will be allocated at no cost to the employee and entitle the holder to purchase shares in OM Gruppen AB at a strike price that corresponds to 110% of the average share price during a reference period prior to the allotment day in the middle of June. One option corresponds to one share. In total the scheme comprises around 1.4 million shares. The options will be made available successively to the holder over a three-year period, at a rate of one third per annum. The lifetime of the option will be seven years.
The options carry a right to acquire existing shares and will therefore involve no dilution effecting for the shareholders of OM Gruppen in terms of the number of shares.
The total cost of the scheme consists of an insurance policy against increased costs in the event of a rise in the share price. During the first year, this cost will be approximately SEK 14 m and it is anticipated that this will fall thereafter as the number of outstanding options is expected to decrease successively. The total average cost for the seven-year-period is expected to be less than SEK 10 m per year. A fall in the OM share price will have a negative impact on income in relation to the number of options distributed.
The allocation of options to the President and CEO Per E. Larsson will amount to 50,000 options per annum over a three-year period. Allocation of other options will be based upon salary levels and individual assessments.
OM is a world-leading company with a unique core competence - transaction technology. OM owns and operates exchanges and clearing houses, including the OM Stockholm Exchange, the OM London Exchange, the OM Fixed Income Exchange and Jiway. OM also develops and markets IT solutions to marketplaces and their players in the world's financial and energy markets. OM currently has a local presence in 11 countries. The Parent Company, OM Gruppen is listed on the OM Stockholm Exchange.
