Note 4 Share-based remuneration

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A B C D E F G H I J K L M N O P Q
Note 4 Share-based remuneration

The company has issued options to the management group and regional directors. The options’ strike price is the stock market price on the date of issue increased by 0.5% per month until exercise date. From 2009 the company has issued options with cash settlement to the management group and regional directors (synthetic options). The options were granted 06.05.2009 and expire 06.05.2013. A total of 1 400 000 options were allocated in March 2012 with the last exercise date on 24.05.2015. 600 000 options were allocated 17.12.2013. The last allocation was in i 2014, 1.4 and 14.7 respectively, totalling 300 000 options. The last exercise date is 12.6.2017. The options have 2 years’ duration, where 50% is vested each year.Employees taken on after the first allocation of options have been allocated options on taking up employment.

The Black & Scholes option pricing model is used to calculate the market value. A brokerage firm is used to carry out the calculations. The table below illustrates the movement in outstanding options throughout 2013 and 2014.

 

Overview 2014 Option category Outstanding options 31.12.2013 Granted options Exercised options Cancelled options Expired options Outstanding options at 31.12.2014 Of which cash-settled
Morten Vike (CEO)* Cash settlement 600 000 400 000 200 000 200 000
Atle Harald Sandtorv (CFO/acting CEO) Cash settlement 100 000 100 000 100 000
Knut Utheim (COO) Cash settlement 100 000 100 000 100 000
Others Cash settlement 750 000 200 000 400 000 100 000 50 000 400 000 400 000
Total 1 450 000 300 000 800 000 100 000 50 000 800 000 800 000
*) Morten Vike resigned at 17.10.14. All options can be exercised until latest 31.05.2015.
Overview 2013 Option category Outstanding options 31.12.2012 Granted options Exercised options Cancelled options Expired options Outstanding options at 31.12.2013 Of which cash-settled
Morten Vike (CEO) Cash settlement 700 000 200 000 300 000 600 000 600 000
Atle Harald Sandtorv (CFO) Cash settlement 280 000 100 000 280 000 100 000 100 000
Others Cash settlement 1 305 884 300 000 805 884 50 000 750 000 750 000
Total 2 285 884 600 000 1 385 884 50 000 1 450 000 1 450 000
Expiry date: Year – month Strike price NOK per share as at 31.12.2014 Strike price NOK per share as at 31.12.2013 Options
Allocation: Year – month 2014 2013
2010 – 09 2014 – 09 18.39 50 000
2012 – 03 2014 – 03 7.53 400 000
2012 – 03 2015 – 03 7.53 400 000
2013 – 12 2016 – 06 23.55 22.22 250 000 300 000
2013 – 12 2017- 06 23.55 22.22 250 000 300 000
2014 – 04 2016 – 06 23.58 100 000
2014 – 04 2017 – 06 23.58 100 000
2014 – 07 2017 – 06 29.77 100 000
Total 800 000 1 450 000
2014 2013
Equity based options available for exercise 250 000 850 000
Weighted average outstanding contract period 23.48 8.17
Type opsjon Børskurs ved tildeling Beregnet verdi pr. opsjon v/tildeling Beregnet total verdi v/ tildeling *) Periodisert kostnad 2009 *) Periodisert kostnad 2008 *) Akkumulert kostnad ført mot EK pr. 31.12.2009 Akkumulert kostnad ført mot EK pr. 31.12.2009 Bokført forpliktelse kontantopsjon pr.31.12.2010
Morten Vike (CEO) EK-opsjon 13.20 3.74 409 240 650 650
Morten Vike (CEO) Cash settlement 7.83 3.81 411 411
Ivar Kvangardsnes (COO frem til 01.12.09) EK-opsjon 23.00 5.86 1 173 582
Eirik Bloch Haugland (CFO frem til 01.11.09) EK-opsjon 23.00 5.86 1 173 582
Atle Harald Sandtorv (CFO fra 01.12.09) Kontantopsjon 10.76 3.40 23 23
Øvrige ansatte i GSF 2009 Kontantopsjon 7.83 3.81 918 918
Øvrige ansatte i GSF 2009 EK-opsjon 23.00 5.72 4 005 912
Totalt 2 316 1 351
*) Beløpene er eksklusiv arbeidsgiveravgift.
Periodisert kostnad fordeler seg slik: 1 972 Klassifisering i regnskapet Klassifisering i regnskapet
Periodisert kostnad kontantopsjoner 1 351 Andre avsetninger for forpliktelser Andre avsetninger for forpliktelser
Periodisert kostnad EK- opsjoner 621 Annen innskutt egenkapital Annen innskutt egenkapital
Total kostnad eks arbeisgiveravgift 1 972
Arbeidsgiveravgift 263 Skyldig offentlige avgifter Skyldig offentlige avgifter
Total kostnad inkl arbeidsgiveravgift 2 235
Estimater benyttet i beregningene 2010 2010
Forventet volatilitet (%) 62.62 62.62
Risikofri rente (%) 2.65 2.65
Estimert kvalifiseringsperiode (år) 3.50 3.50
2014 Option category Listed price on allocation Calculated value per option on allocation Calculated total value on allocation*) Total value of all options at 01.01.2015 Change in provision UB-IB *) Exercised options 2014 Acc. cost charged against equity at 31.12.2014 Book liability cash settlement at 31.12.2014
Morten Vike (CEO)** Equity-based option 13.20 3.74 1 123 1 122 1 122
Former employees where option has expired Equity-based option 23.00 5.86 2 346 2 346 2 346
Others Equity-based option 23.00 5.72 4 005 3 419 3 419
Morten Vike (CEO)** Cash settlem. 6.83 1.78 712 4 906 -4 906 6 610 0
Morten Vike (CEO)** Cash settlem. 22.22 3.94 788 29 900 929
Atle Harald Sandtorv (CFO/acting CEO) Cash settlem. 22.22 3.94 394 14 477 491
Knut Utheim (COO) Cash settlem. 22.56 4.78 478 429 429
Other options allocated in 2010 Cash settlem. 16.50 6.66 666 301 -301 -0
Other options allocated in 2012 Cash settlem. 6.83 1.78 1 424 4 277 -4 277 6 645 -0
Other options allocated in 2013 Cash settlem. 22.22 3.94 1 181 41 916 957
Other options allocated in 2014 Cash settlem. 22.56 4.24 424 397 397
Other options allocated in 2014 Cash settlem. 28.90 2.74 274 60 60
Total 13 815 16 455 -6 305 13 255 6 887 3 263
*) The amounts are excluded of social security costs.
**) Morten Vike resigned at 17.10.14. All options can be exercised until latest 31.05.2015.
2013 Option category Listed price on allocation Calculated value per option on allocation Calculated total value on allocation*) Total value of all options at 01.01.2014 Change in provision UB-IB *) Exercised options 2013 Acc. cost charged against equity at 31.12.2013 Book liability cash settlement at 31.12.2013
Morten Vike (CEO) Equity-based option 13.20 3.74 1 123 1 122 1 122
Former employees where option has expired Equity-based option 23.00 5.86 2 346 2 346   2 346
Others Equity-based option 23.00 5.72 4 005 3 419   3 419
Morten Vike (CEO) Cash settlem. 7.83 3.81 1 143 1 310 -1 310 1 858 -0
Morten Vike (CEO) Cash settlem. 6.83 1.78 712 1 717 3 189 4 906
Morten Vike (CEO) Cash settlem. 22.22 3.94 788 29 29
Atle Harald Sandtorv (CFO) Cash settlem. 10.76 3.40 680 209 -209 322 0
Atle Harald Sandtorv (CFO) Cash settlem. 6.83 1.78 356 866 -866 1 492 0
Atle Harald Sandtorv (CFO) Cash settlem. 22.22 3.94 394 14 14
Other options allocated in 2007 Cash settlem. 7.83 3.81 3 047 1 750 -1 750 2 478 0
Other options allocated in 2010 Cash settlem. 16.50 6.66 666 102 199 301
Other options allocated in 2012 Cash settlem. 6.83 1.78 1 424 3 313 963 3 760 4 277
Other options allocated in 2013 Cash settlem. 22.22 3.94 1 181 41 41
Total 17 865 16 155 299 9 912 6 887 9 567
*) The amounts are excluded of social security costs.  
 
2014 2013 Classification in accounts
Accrued cost is divided as follows:  
Accrued cost cash settlement -4 277 199 Other provisions for commitments
Exercised options during the year 6 645 * -?? Payroll & social sec.costs/bank
Total cost excl. employer’s national insurance contributions 2 368 199
Employer’s national insurance contributions 1 557 419 Public dues payable
Total cost incl. employer’s national insurance contributions 3 925 618 Payroll & social security costs
The costs related to share and cash-based remuneration in 2014 is TNOK 8 507. This is is charged in the income statement as a personnel cost. Social security contributions are provided for on an ongoing basis based on the fair value of the options. At 31. December 2014 outstanding options with the right to cash settlement were stated at TNOK 3 263, of which TNOK 929 is stated as “Other non-current liabilities” as the options expire in 2015. TNOK 2 334 is stated as long-term commitments as per 31.12.2014. Options issued are cancelled when employment terminates. 
 
Estimates used in calculations on allocation of options  
Anticipated volatility (%)   48.73
Risk-free rate of interest (%)   1.61
Estimated qualification period (years)   2.99
 
The estimated qualification period for the options is based on historical data, and does not necessarily represent an indication of the future.
In order to estimate volatility, the management have applied historical volatility for comparable listed companies. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

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