On 21 April 2021 the general meeting of Kvika banki hf. („Kvika“ or „the bank“) authorised the Board of Directors to approve a share option plan in accordance with Article 10 of the Income Tax Act No. 90/2003 for all employees of Kvika and its subsidiaries (the “group”). On 10 November 2021 Kvika’s Board of Directors implemented a share option plan which was approved by Iceland Revenue and Customs (Skatturinn) on 9 December 2021.
The objective of the Bank’s proposed stock option plan (the “Stock Option Plan”) is to integrate the interests of employees with the long-term goals of the group. Each employee has been granted a stock option for up to ISK 1,500,000 per year the next three years on the following exercise dates:
on 15 December 2022, the stock option holder has earned the right to purchase share capital for up to ISK 1,500,000;
on 15 December 2023, the stock option holder has earned the right to purchase share capital for up to ISK 1,500,000;
on 15 December 2024, the stock option holder has earned the right to purchase share capital for up to ISK 1,500,000.
Stock option agreements between the Bank and employees of the group were signed on 15 December 2021 in accordance with the Stock Option Plan.
The calculation of the purchase price was based on weighted average price in transactions with shares of the Bank for ten whole business days prior to the contract date, cf Article 10(1)(4) of the Income Tax Act No 90/2003, i.e. ISK 26.44 per share.
In total, 326 employees entered into a stock option agreement with the Bank on up to 18.494.632 shares per year based on 100% exercise of their options.
For further information the Stock Option Plan is attached.