Granting of stock options

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The Board of Directors of Marel hf. resolved on 24 April to grant to employees up to 6,115,000 shares through stock option agreements, thereof 2,420,000 to the Executive Team. The stock options will be granted to the Executive Team and to selected employees in strategic positions.

The aim of the stock option agreements is to align long-term interests of employees and of the Company. The key terms and conditions of the new stock option program were approved by Marel’s Annual General Meeting on 6 March 2019 in accordance with the Company's Remuneration Policy as approved at Marel’s Annual General Meeting on 18 March 2020. Key terms and conditions of the agreements are as follows:

  • The stock option agreements entitle purchase of shares at the base exercise price of EUR 3.80 per share.1 The exercise price shall be adjusted for any dividend payments decided after the grant date.
  • One vesting period of 3 years. Exercise periods are two per year in April and October subject to disclosure of the Q1 and Q3 financials. First exercise period will be following the publication of the Q1 2023 results. Option holders can delay exercise of these options to Q2 2024, when the agreements expire and all unexercised options are cancelled.
  • Marel’s Executive Team members are required to hold shares, corresponding to the net profit gained from the options (after tax) until the following holding requirements are reached, measured in total share value owned as a multiple of annual base salary: CEO three times; other members of the Executive Team two times.
  • Other option holders are not subject to holding requirements.
  • The options are valid only if the holder is still employed by Marel group (Marel hf. or its subsidiaries) at the time of vesting.

The total number of unexercised stock options granted by Marel hf., including this new stock option scheme, currently amounts to 24.1 million shares corresponding to approximately 3.1% of total issued share capital. The Company’s cost of the new share option scheme is estimated to be approximately EUR 3.5 million over the next 3 years based on the option pricing model of Black-Scholes.

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

Name

Title

New stock options

Older granted and unexercised options

Shareholding of insider

Shareholding of financially related parties

Árni Oddur Þórðarson

Chief Executive Officer

580,000

2,260,000

64,634

67,235

Linda Jónsdóttir

Chief Financial Officer

320,000

1,855,000

182,500

0

Árni Sigurðsson

Chief Strategy Officer and EVP Strategic Business Units

320,000

1,855,000

0

100,000

Roger Claessens

Executive Vice President Poultry

200,000

250,000

0

0

David Wilson

Executive Vice President Meat

200,000

957,000

195,857

0

Guðbjörg Heiða Guðmundsdóttir

Executive Vice President Fish

200,000

40,000

0

0

Folkert Bölger

Executive Vice President Global Supply Chain

200,000

500,000

17,862

0

Ulrika Lindberg

Executive Vice President Global Markets and Services

200,000

250,000

0

0

Anna Kristín Pálsdóttir

Executive Vice President Innovation

200,000

67,000

0

0

                            

1 The exercise price is determined by the closing rate of Marel shares at Euronext Amsterdam on 24 April 2020, i.e. EUR 3.80 per share.


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