ContextVision new stock-based incentive program for all employees
The board and management of ContextVision have introduced a new incentive program through the creation of a profit-sharing foundation for its employees.
The program is intended to streamline the focus and efforts of all employees by allocating a part of the company’s net profits to a foundation, that, in turn will use the allocated funds to purchase ContextVision’s common stock on the Oslo Stock Exchange.
Each year senior management and the board of directors will formulate and set a number of operational and strategic targets to be achieved for the coming fiscal year. If such operational and strategic milestones are met, an amount will be calculated (according to a pre-established formula) and paid into the foundation. Each milestone carries a separate allocation.
The board of the foundation consists of 3 people, one being the company CEO Anita Tollstadius, and 2 employees elected among the personnel. CEO Anita Tollstadius has the same share (3%) of the foundation as all other employees, who have been working full time during 2011.
For 2011, the result of this program was a contribution of total 300 TSEK. Today Monday February 19, the foundation has placed purchase orders for ContextVision shares at the Oslo Stock Exchange. Depending on the purchase price, the foundation will buy approximately 16,000 shares.
According to the rules of the foundation, the shares bought each year will be kept for a period of 4 years. After that period, the shares will be sold, and funds (less tax) will be paid to the employees.
CEO Anita Tollstadius commented:
The new incitement program gives us a perfect opportunity to further motivate our employees and to share overall goals within ContextVision. As the funds of the profit-sharing foundation will be invested in COV shares, the long term incitement of the employees will be linked to the creation of shareholder value.