The Annual General Meeting of Shareholders makes decisions on the compensation of the Members of the Board of Directors. The Board decides on the compensation of the CEO and the CEO on the other management. The compensation of the management in subsidiaries is decided in the corresponding order. In addition to the normal salary, bonus and option programs are used in the Group.
The shareholdings and warrants of the Board, CEO and top management are disclosed under their presentation.
Renumeration of the Board and the Executive Team
STOCK OPTION PLAN 2010
The Board of Directors meeting of Dovre Group Plc held on May 27, 2010 approved a new option plan 2010 based on the authorization given by the Annual General Meeting of April 18, 2007. Under this plan, a total of 2,450,000 stock options are offered for subscription to the key persons in Dovre Group. The dilution effect of the stock option plan is less than 4% of the total number of Dovre Group shares. Each stock option entitles the holder to subscribe for one share in Dovre Group.
Grounds for the deviation from the shareholders' pre-emptive right to subscription exist because the options are intended to encourage the management and key personnel of the Group to work on a long-term basis to increase the shareholder value and to commit them to the Group.
The option plan is divided into three series. The number of stock options and the subscription periods and subscription prices, which are based on the final daily ratings in the public trading of the share of Dovre Group Plc, are as follows:
- A-series: a maximum of 900,000 stock options can be given, the subscription price is the average rating in 2010 Q1 and the subscription period 1.3.2012 - 28.2.2015
- B-series: a maximum of 775,000 stock options can be given, the subscription price is the average rating in 2011 Q1 and the subscription period 1.3.2013 - 28.2.2016
- C-series: a maximum of 775,000 stock options can be given, the subscription price is the average rating in 2012 Q1 and the subscription period 1.3.2014 - 28.2.2017
The terms and conditions of the option plan 2010 are available from <this link>.
Dovre Group Plc's share subscription price with Stock Options 2010A and market value of the option series
The share subscription price for Dovre Group Plc stock option 2010A is EUR 0.33 per share (the trade volume average daily price of the share on the NASDAQ OMX Helsinki Ltd. during 1 January - 31 March 2010).
The theoretical market value of a stock option 2010A is EUR 0.33 per stock option. The theoretical market value of all of the stock option series is thus approximately EUR 77 thousand. The theoretical market value of one stock option has been calculated by using the Black & Scholes stock option pricing model with the following input factors: share price EUR 0.33, share subscription price EUR 0.33, risk free interest rate 1.4%, validity of stock options 5 years, and volatility 27%.
Dovre Group Plc's share subscription price with Stock Options 2010B and market value of
the option series
The share subscription price for Dovre Group Plc stock option 2010B is EUR 0.47 per share (the trade volume average daily price of the share on the NASDAQ OMX Helsinki Ltd. during 1 January - 31 March 2011).
The theoretical market value of a stock option 2010B is EUR 0.17 per stock option. The theoretical market value of the stock option series is thus approximately EUR 129 thousand. The theoretical market value of one stock option has been calculated by using the Black & Scholes stock option pricing model with the following input factors: share price EUR 0.50, share subscription price EUR 0.47, risk free interest rate 2.8%, validity of stock options 4.8 years, and volatility 29%.