A stock option programme provides incentives to focus on share performance. The Supervisory Board makes an annual grant of stock options to members of the Executive Management, the Group Executive Management, and certain senior management employees as a forward-looking incentive.
In 2007, the Supervisory Board granted a total of 25,700 stock options to the Executive Management, 91,039 stock options to the Group Executive Management and senior executives and 18,000 stock options to employees to reward outstanding performance. Options granted in 2007 entitled the holders to acquire shares at the average share price ("all trades") on OMX Copenhagen Stock Exchange on 27 February 2007 which was DKK 456.76 plus a supplement of 10%.
Each option entitles the holder to acquire one share at the exercise price. Options cannot be exercised earlier than three years after the date of grant and not later than five years after the date of grant. We expect to grant a stock option programme of a similar value in 2008.
Employee bonus
It is important to TrygVesta that all employees see their own efforts relative to the Group's overall targets. For this purpose, we have an employee bonus programme for all employees. Employees bonus benchmarks were combined ratio and growth in 2007. Our performance triggered shares at a discount to the market price with a discount element equal to DKK 10,000 to each employee. A similar programme will be offered in 2008.
Last update: 29 February 2008