SRV Group Plc’s Board of Directors resolved on a multi-year incentive scheme for the President and CEO
SRV GROUP PLC STOCK EXCHANGE RELEASE 25 JUNE 2019 10.15 EET
SRV Group Plc’s Board of Directors resolved on a multi-year incentive scheme for the President and CEO
SRV Group Plc’s Board of Directors has resolved on a new share-based incentive scheme. The scheme applies to Saku Sipola, who becomes SRV Group Plc’s President and CEO latest on 1 January 2020. The incentive effect of the scheme is based on value increase of SRV Group Plc’s shares.
Under the scheme, Saku Sipola will be given 600,000 acquisition rights, entitling him to acquire the number of SRV Group Plc’s shares corresponding to the acquisition rights. The subscription price pursuant to the acquisition rights is the volume-weighted average share price of SRV Group Plc’s share on Nasdaq Helsinki in continuous trading on 24 June 2019, the date preceding the decision of the Board of Directors on the incentive scheme, i.e. EUR 1.62 per share. Under the scheme, new shares or treasury shares in the possession of the company can be issued. The company’s Board of Directors will make a decision on the manner of implementation separately each time. Under the terms of the scheme, the acquired shares are subject to a transfer restriction, which is valid for two years from the acquisition of the shares. The acquisition rights can be exercised in three two-year long exercise periods, the first of which begins on 1 March 2021 and ends on 28 February 2023, the second begins on 1 September 2022 and ends on 31 August 2024, and the third begins on 1 September 2024 and ends on 31 August 2026. During each exercise period, the acquisition rights holder is entitled to exercise 200,000 acquisition rights.
On 25 June 2019, the theoretical market value of the scheme is approximately EUR 0.3 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 1.62, reference share price EUR 1.60, risk-free interest rate 0.34% and volatility 32.97%. The total recognised IFRS cost of the incentive scheme 2019–2026 is approximately EUR 0.3 million.
For further information, please contact:
Ilpo Kokkila, Chairman of the Board, Tel. +358 400 485 555, ilpo.kokkila@pontos.fi
Maija Karhusaari, Senior Vice President, Communications and Marketing, Tel. +358 45 218 3772, maija.karhusaari@srv.fi
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SRV in brief
SRV is a bold 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 selected growth centres in Finland and Russia. Our revenue in 2018 was EUR 960 million. Over 1,000 people work for us and we employ a network of almost 4,000 subcontractors in our projects.
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