Better Collective establishes 2026 Long Term Incentive Plan for key employees in the Better Collective group
Summary by AI BETAClose X
The board of directors (the “Board”) of Better Collective A/S (the “Company” or “Better Collective”) has decided to implement a 2026 Long Term Incentive Plan (the “LTI”) for key employees and a member of the executive management in the Better Collective group. Grants under the 2026 LTI will be in the form of stock options vesting after three years.
Regulatory Release no. 59/2025
The LTI has been designed by the Remuneration and Nomination Committee and approved by the Board with the focus to appropriately retain, motivate and reward the management and selected key employees of the Better Collective group. The intent is also to support sustainable value creation for the shareholders as well as aligning the interests of participants in the LTI to those of Better Collective A/S’ shareholders. To achieve this, the LTI provides an opportunity to participate in the value creation of Better Collective by rewarding share price growth.
In total, the grants under the LTI in 2026 will cover up to 750,000 stock options to key employees, including one member of the executive management of the Better Collective group (the “Participants”). Though it is the intention that the program will be revolving with a yearly grant, the size of such grants and the allocation hereof in the following years, will be at the full discretion of the Board or, in respect of grants to key employees, of the executive management subject to an authorization from the Board. Stock options will be granted free of charge for the Participants on an annual basis. The initial grant to the member of executive management will occur in December 2025, whereas the initial grant for other Participants will occur in early 2026.
Terms and conditions of the LTI
As a default, the stock options will vest after three consecutive financial years from the date of the grant of the stock option. Vesting of the stock option is subject to the continued employment of the Participant with the Better Collective group. Upon vesting, the Participant will be able to exercise the granted stock options during a following two-year exercise period. If the stock options are not exercised before the expiry date, the stock options will lapse automatically without compensation.
Each stock option granted to the Participant will hold the right to purchase one share in Better Collective of a nominal value of EUR 0.01 against payment of an exercise price equal to the closing share price of Better Collective’s shares as traded on Nasdaq Stockholm on Tuesday 16 December 2025 at SEK 111.60 or - in the sole discretion of Better Collective - to be settled in cash, net of tax.
The Participants may exercise stock options by providing an exercise notice in exercise windows opening during the exercise period in each fifteen (15) calendar day period starting one hour after the publication of a year-end report or an interim financial report (subject to customary exceptions for possession of inside information, etc.).
The grant of stock options to each Participant is subject to an individual agreement which, inter alia, has customary provisions on lapse of unvested instruments in case of cessation of the Participant’s employment in the Better Collective group, clawback, etc.
In case of exceptional and non-recurring events which may affect the value of Better Collective A/S, the Board has a discretionary right to adjust the exercise price and/or the number of granted stock options to the Participants. Such adjustment(s) may be made if the Board determines it to be appropriate to avoid that the value creation to the participant is affected by events unrelated to the ordinary business of Better Collective, or that the participant receives an unintended proportion of the value creation in Better Collective A/S. Holders of stock options will have no shareholder rights until delivery of shares to the participants following vesting or exercise of stock options has occurred.
The stock options will be granted free of charge to the Participant on an annual basis.
The theoretical market value of the LTI is approximately up to 3.5 mEUR. The theoretical market value of the LTI has been calculated by applying the Black-Scholes model for valuation of options based on an assumed share price of SEK 111.60, exercise price of SEK 111.60, a volatility rate of 50%, average duration of 5 years, and an annual dividend distribution of SEK 0 per share.
The grant value of the program will be evenly expensed as an employee remuneration cost during the vesting period. The cost will be revalued at each period based on the expected retention rate of the employees included in the program.
The LTI will have no dilutive effect on Better Collective’s shareholders as Better Collective expects to meet its obligations under the LTI by way of delivery of treasury shares acquired in buy-back programs.
Cancellation of stock options granted to the CFO under the 2023 LTI
With reference to the regulatory release no. 2/2023 of Better Collective concerning the establishment of a 2023 Long Term Incentive Plan (“2023 LTI”) under which Better Collective CFO Flemming Pedersen has received a total of 120,000 stock options (the “2023 CFO Options”), it is noted that the 2023 CFO Options will be cancelled and lapse in connection with Flemming Pedersen’s participation in the 2026 LTI Plan.
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