Better Collective announces new employee reward scheme
Better Collective is looking to reward key employees through a new, multimillion-euro grant programme.
Altogether, 35 employees stand to benefit from Better Collective’s Long-Term Incentive (LTI) plan in 2022, which covers 71,432 performance share units and 23,221 share options.
This scheme is designed to encourage select employees to go above and beyond, and offers €1.4m ($1.6m) in total if all financial goals are met, and zero if they are not.
If “exceptional performance above target” is achieved, the programme’s maximum value can reach €2.8m, assuming a constant share price.
The LTI was designed by Better Collective’s Remuneration Committee and approved by its board of directors, with a view to “appropriately retain, motivate and reward selected key employees”.
Moreover, the Danish company is looking to “support sustainable value creation” and bring the participants’ interests more in line with those of its shareholders.
To achieve this goal, Better Collective said: “The LTI provides an opportunity to participate in the value creation of Better Collective by rewarding business performance against selected metrics as well as share price growth.”
And in an attempt to assuage shareholders’ concerns that the LTI may have a dilutive effect, Better Collective said it will conduct share buyback programmes to meet its obligations.
The share units and options will be vested over a three-year period. Better Collective also said executive management will not receive any grants under the LTI.
It intends for the programme to revolve each year with an annual grant, though the size of such grants and their allocation remain at the board’s discretion.