2008
Share based long term incentive programme: A performance share programme 2008 will be implemented. It will comprise no more than 30 senior executives within Rezidor. The term of the programme will be 3 years, and the programme will in total comprise no more than 1,860,000 shares. The Board of Directors was authorised until the AGM 2009 to decide on acquisitions and transfers of own shares. No more than 1,380,000 shares can be acquired to secure delivery of shares to participants in the programme, and no more than 480,000 shares can be acquired and transferred to cover social security costs. The financial targets, and thus the allotment of Performance Shares, will be based 75 per cent on the company's TSR relative to a comparator group of 11 publicly traded international hotel companies and 25 per cent on the company's EPS growth. They also include a minimum level which must be achieved in order for any allotment to occur at all, as well as a maximum level in excess of which no additional allotment will occur.
2007
On May 4th, 2007, the AGM approved a long-term equity settled performance-based incentive programme to be offered to approximately 25 executives within the Group. The purpose of the programme is to offer a remuneration package to ensure that remuneration within the Group helps align executives with shareholder interests, that the proportion of remuneration linked to company performance increases and that it encourages executive share ownership. In order to implement the performance based share programme, the Board of Directors was authorised by the AGM to decide on acquisitions of own shares on the stock exchange. The performance based share programme 2007 was based on no more than a total of 1,250,000 shares.
The programme was launched on June 15th, 2007, with a vesting period up to May 1st, 2010, and contains two different award elements; a bonus based award and a savings based award. The award is dependent on certain performance criteria, including growth in earnings per share and total shareholder return relative to a defined peer group.