ALK-Abelló — Remuneration Information 2017

Mar 23, 2017

Copenhagen, 2017-03-23 14:44 CET (GLOBE NEWSWIRE) --

(ALKB:DC / OMX: ALK B / AKABY / AKBLF):

Share option programme
According to the guidelines for incentive payments adopted at the Company's
annual general meeting on 15 March 2017, the Board of Directors has passed a
resolution to grant a total of 26,669 share options, comprising 15,553 options
to the members of the Board of Management and 11,116 options to a group of key
employees. The share option programme is subject to the fulfilment of economic
key indicators with a threshold below which there will be no payout, and with
the opportunity to perform above target. In case of performance above target, a
multiplier is used that can increase the payout up to 100%.

The options can be exercised during the period from 1 March 2020 to 1 March
2022 during the trading windows following the release of annual and interim
reports. If the option holders have not exercised their options within the
period specified, the options will lapse without any compensation to the
holders.

The exercise price of the options has been set at DKK 952 each, corresponding
to an average of the closing prices of the Company’s shares on NASDAQ
Copen­hagen during the period 16 - 22 March 2017 (both days included). To this
should be added annual interest at the rate of 2.5%, which will be added the
first time on 1 March 2018. The exercise price of the options will be adjusted
on payment of dividend of more or less than DKK 5 per share, to the effect that
dividend in the amount of DKK 1 per share exceeding/below DKK 5 results in a
reduction/addition of the exercise price by DKK 1.

The market value of the adopted option plan of 26,669 options is approximately
DKK 5.1 million applying the Black & Scholes model for valuation of options.
The determination of the value is based on an assumed exercise price of DKK
1,025, an annual dividend distribution of DKK 5 per share, a volatility rate of
31% p.a. and a risk-free interest rate of -0.29% p.a.

Under the international financial reporting standards (IFRS), the incentive
plan will be recognised in the income statement in the respective functional
areas over the vesting period.

Performance share programme
The Board of Directors has passed a resolution to grant performance shares in
accordance with the guidelines for incentive pay adopted at the Company's
annual general meeting on 15 March 2017. The scheme comprises a total of 13,643
performance shares, including 3,139 shares to the members of the Board of
Management and 10,504 shares to a group of key employees. The market value of
the performance shares is approximately DKK 13.0 million, calculated on the
basis of an average of the closing prices of the Company's shares on NASDAQ
Copenhagen during the period 16 – 22 March 2017 (both days included).

The final transfer of ownership of the performance shares takes place three
years after the grant (2020), and is subject to the fulfilment of economic key
indicators with a threshold below which there will be no payout, and with the
opportunity to perform above target. In case of performance above target, a
multiplier is used that can increase the payout up to 100%.

Under the international financial reporting standards (IFRS), the incentive
plan will be recognised in the income statement in the respective functional
areas over the vesting period.

The grant of share options and performance shares does not change the Company’s
financial forecast.

No share options or performance shares have been granted to members of the
Board of Directors.

                             ALK-Abelló A/S

For further information please contact:
Steen Riisgaard, Chairman of the Board of Directors, tel +45 4574 7576