Share related remuneration schemes
The Annual General Meeting of Shareholders decided on March 17, 2005, to issue stock options to the management of the Elektrobit Corporation. The purpose of the scheme was to encourage the management to work on a longterm basis to increase the shareholder value and to commit them further to their employer. The total number of stock options 2005 has been 4,500,000. The stock options were divided into stock option classes 2005A, 2005B, 2005C and 2005D. No subscriptions were made by the end of the share subscription period for stock options 2005A-D.
A total of 372,000 2005A stock options, 1,002,500 2005B stock options, 60,000 2005C stock options and 60,000 2005D stock options have been distributed to EB´s management. The rest of the stock options were granted to Elektrobit Technologies Ltd., a fully-owned subsidiary of Elektrobit Corporation. In accordance with the terms and conditions of the stock options, the prerequisite for receiving 2005A stock options was that the participating managers purchase a predetermined number of Elektrobit Corporation shares, as decided by the Board of Directors. 2005B2005D stock options are subject to preconditions relating to EB´s financial targets. In accordance with the share ownership scheme, associated with this stock option scheme, the participating managers are committed to using a considerable portion of the future income from the distributed stock-options for purchasing the Company´s shares.
The Annual General Meeting decided on March 14, 2008 that there is a weighty financial reason for the Company to issue stock options since the stock options are intended for use as part of the incentive and commitment program for key personnel.
The maximum total number of stock options is 4,200,000, of which 1,400,000 were marked with the symbol 2008A, 1,400,000 with the symbol 2008B, and 1,400,000 with the symbol 2008C. The stock options entitle to subscription of a maximum total of 4,200,000 new shares of the Company or treasury shares.
The subscription price for the shares to be subscribed based on the stock options is based on the prevailing market value of the Elektrobit Corporation share at NASDAQ OMX Helsinki in January 2009, January 2010 and January 2011. At the end of 2013, 1,167,994 stock options with symbol 2008A, 1,139,000 stock options with symbol 2008B, and 740,000 stock options with symbol 2008C were distributed to the key employees of Elektrobit Corporation.