Investors

Issuance of Stock Options

03 Dec 2014

The Board of Directors of Marel hf. resolved on December 2, 2014 to grant to the members of Marel’s Executive Team up to 2.5 million shares through stock option agreements.

The aim of the stock option agreements is to align the interests of senior management and the company in the long run. This is in accordance with the company’s remuneration policy approved at Marel’s Annual General Meeting in March 2014. The stock options will be granted to all members of the Executive Team, excluding the CEO. All will receive the same number of options, 225,000.  

Key terms and conditions of the agreements are as follows:

  • The stock option agreements entitle purchase of shares at the base offering price of EUR 0.8613 per share1 that increases annually by 3% (hurdle rate). The exercise price shall be adjusted for any dividend payments made by the Company after the grant date.
  • The options are allotted in three layers, so that the first 60% are exercisable in April 2018, the second 20% in 2019, and the remaining 20% in 2020. Exercise periods are two per year in April and October.  Option holders can delay exercise of these options to 2021, when the agreements expire and all allotted but unexercised options are cancelled.
  • Executive Team members are required to hold shares corresponding to approximately the net gain after tax from exercising the options, whilst employed by Marel.

The total number of shares granted by Marel hf. in stock option agreements with employees, including this new stock option scheme, currently amounts to 16.9 million shares corresponding to approximately 2.3% of total share capital. The company’s cost of the new share option scheme is estimated to be EUR 346,000 over the next 5 years based on the option pricing model of Black-Scholes.

Arni Sigurdsson Head of Strategy and Development now becomes a member of the Executive Team.  

Details of the share options granted to Marel´s Executive Team:

Name

Title

New Stock Option

Older granted and unexercised options

Shareholding in own name and/or fin. related parties

Anton de Weerd

MD IC Poultry

225,000

665,000

0

Arni Sigurdsson

Head of  Strategy

225,000

0

0

David Freyr Oddsson

Corp. Dir. HR

225,000

60,000

50,000

David Wilson

MD IC Meat

225,000

260,000

0

Gerrit Den Bok

MD Further Processing

225,000

335,000

0

Linda Jonsdottir

CFO

225,000

182,500

0

Paul van Warmerdam

Head of Global Supply Chain

225,000

60,000

0

Petur Gudjonsson

Head of inter. Sales and service

225,000

665,000

159,430

Sigsteinn Gretarsson

COO

225,000

537,500

25,997

Sigurdur Olason

MD IC Fish

225,000

0

0

Vidar Erlingsson

Head of Global innovation

225,000

132,500

0

1) The exercise price is determined by the closing rate of Marel shares at NASDAQ OMX Iceland hf. on 2 December 2014, i.e. ISK 132.50 per share, calculated with the Central Bank of Iceland EUR/ISK mid rate on that day; 153.83.