SRV GROUP PLC STOCK EXCHANGE RELEASE 17 DECEMBER 2020 13:30 EET
Changes in the share-based incentive scheme for the President and CEO of SRV
On 17 December 2020, the Board of Directors of SRV Group Plc decided on changes to the share-based incentive scheme of President and CEO Saku Sipola. The changes concern the number of acquisition rights, the subscription price of the acquisition rights and the periods during which the acquisition rights can be exercised. The purpose of the changes is to ensure that the incentive effect of the scheme remains at its previous level by taking into account the changes in the number of the company's shares caused by SRV's 2020 rights issues. The incentive effect of the scheme is based on the increase in the value of SRV Group Plc's share.
As a result of the changes, Sipola has the right to acquire 1,000,000 shares at a subscription price of EUR 0,55 per share. The basis for determining the subscription price is the volume-weighted average price of SRV's share on Nasdaq Helsinki in continuous trading from 1 August to 30 November 2020. After the changes, the acquisition rights can be exercised in the following three periods: the first begins on 1 March 2022 and ends on 28 February 2023, the second begins on 1 March 2023 and ends on 31 August 2024, and the third begins on 1 September 2024 and ends on 31 August 2026. During the first and second exercise periods, the acquisition rights holder is entitled to exercise 300,000 acquisition rights and during the third period 400,000 acquisition rights. The share-based incentive scheme has been described in the stock exchange release published on 25 June 2019: https://www.srv.fi/en/releases/srv-group-plcs-board-of-directors-resolved-on-a-multi-year-incentive-scheme-for-the-president-and-ceo/
On 17 December 2020, the theoretical market value of the changed scheme is approximately EUR 0.1 million. The Black & Scholes model, applied in the pricing of options, has been used to calculate the theoretical market value of the scheme, with the following assumptions: share price EUR 0.56, reference share price EUR 0.55, risk-free interest rate -0.49% and expected volatility 34%. The total recognised IFRS cost of the changed incentive scheme 2020–2026 is approximately EUR 0.1 million, which is recognised in addition to the original cost of the share-based incentive scheme.
For further information, please contact:
Tomi Yli-Kyyny, Chairman of the Board, tel. +358 50 1280, tomi.yli-kyyny@caruna.fi
Johanna Metsä-Tokila, SVP, General Counsel, tel. +358 40 562 0408, johanna.metsa-tokila@srv.fi
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Nasdaq Helsinki
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SRV in brief
SRV is developer and innovator in the construction industry. We want to offer the best customer experience as a constructor of urban city centres, while also being the most attractive employer in the industry. Our genuine cooperation and enthusiasm for our work comes across in every encounter. Sustainability is reflected in all our activities.
Established in 1987, we are a publicly listed company since 2007 in Helsinki Nasdaq stock exchange that operates in growth centres in Finland and Russia. Our revenue in 2019 was EUR 1,061 million. Over 1,000 people work for us and we employ a network of almost 4,000 subcontractors in our projects.
SRV – Building for life