The annual general meeting held on 8 May 2024 resolved to implement a long-term incentive program in the form of a share saving program. The purpose of the incentive program is to encourage a broad ownership amongst the company’s employees, facilitate recruitment, maintain competent employees, increase the alignment of interest between the employees and the company’s shareholders and increase motivation to reach or exceed the company’s financial targets.
18 employees in Karnov participate in the share savings program. The participants are divided into four different categories depending on position. Category 1 includes the Group CEO, category 2 includes the CFO and the regional CEOs, category 3 includes the Group management (Senior Executives) and category 4 includes a number of key position holders.
The employees participate in the program by allocating acquired or already held ordinary shares to the program (so-called savings shares). The maximum investment permitted in savings shares depends on the category of the participant. The participants have allocated a total of 77,285 savings shares to the program.
Participants who retain the savings shares during the program’s vesting period of at least three years and also remain employed by Karnov throughout the whole vesting period will at the end of the period be eligible for free additional ordinary shares. For participants in category 1–4, the allotment of free additional shares is subject to the satisfaction of certain performance criteria related to the organic growth, organic adjusted EBITDA margin, synergies from the two cost-efficiency initiatives as well as achieved ESG targets, as defined in the annual general meeting’s resolution, during 2024–2027.
Full allotment would mean that the total number of shares under the program amount to no more than 293,393 ordinary shares, corresponding to approximately 0.3 per cent of the total number of shares outstanding in the company.