Long term incentive plans for executive management and other key employees in pandora
Today, Pandora A/S (“Pandora”) announces the annual grant of performance shares for 2022 under its Long-term incentive plan (“LTIP”), in accordance with its Remuneration Policy.
The LTIP provides for a target award of 21,053 shares (maximum: 42,106 shares) to Pandora’s Executive Management, conditional on performance (i.e., the award is in the form of Performance shares units (“PSUs”)). In total, considering all participants (Executive Management and key employees) a target award of 125,000 shares (maximum: 250,000 shares) is provided under the LTIP in 2022. The maximum award of shares to all participants under the LTIP in 2022 will only be made if the performance conditions set by the Board are achieved at or above stretch objectives. Based on the reference share price of DKK 814.28 (the average price of Pandora’s shares on Nasdaq Copenhagen over the last five trading days of 2021), the target award to all participants is valued at DKK 101.8 million (maximum: DKK 203.6 million). Pandora intends to use treasury shares to meet its obligations to deliver shares under the LTIP.
The PSUs will vest and be awarded as shares following the publication of Pandora's annual report for 2024, subject to fulfilment of the performance conditions in the range 0 – 200% of the target achievement.
For Executive Management the performance conditions are set out in the table below:
| LTIP 2022 for Executive Management: | Weight | Vesting % for achievement of performance conditions | ||||
| Below threshold | At threshold | At target | At or above stretch | |||
| Performance conditions | EPS1 | 75% | 0% | 50% | 100% | 200% |
| Sustainability2 | 25% | 0% | 100% | 200% | ||
| Total | 100% | 0% | 37.5% | 100% | 200% | |
| Shares awarded | 0 | 7,895 | 21,053 | 42,106 | ||
| Value at the reference share price | 0 | DKK 6.4m | DKK 17.1m | DKK 34.3m | ||
- Pandora’s Earnings per share (EPS) for Financial Year 2024 will be assessed against objectives based on Pandora’s internal financial projections.
- Pandora’s Sustainability will be addressed against 2024 objectives based on Pandora’s progress as a sustainability leader. You can read more about the objectives in our Sustainability Report
5 years’ programme for executive management
The PSUs vest and are awarded as Pandora shares after the end of the performance period – i.e., an initial vesting period of three years. For Executive Management, after the PSUs vest, the shares awarded are subject to a further two-year holding period before the Executive Management can sell the shares (except for sales for payment of taxes triggered by grants vested under the LTIP). There are no further performance criteria tied to the two year holding period. All sales of shares by Executive Management are, in any event, subject to applicable laws and the Company’s internal rules for the trading in Pandora securities. In addition, Executive Management meet and continue to be subject to a share ownership requirement of one years’ annual base salary.
In accordance with the relevant International Financial Reporting Standards (IFRSs) the accounting expense for the LTIP will be recognised in the income statement over the three-year vesting period.
About Pandora
Pandora is the world's largest jewellery brand. The company designs, manufactures and markets hand-finished jewellery made from high-quality materials at affordable prices. Pandora jewellery is sold in more than 100 countries through 6,800 points of sale, including more than 2,600 concept stores.
Headquartered in Copenhagen, Denmark, Pandora employs 27,000 people worldwide and crafts its jewellery at two LEED-certified facilities in Thailand. Pandora is committed to leadership in sustainability and will use only recycled silver and gold in its jewellery by 2025 and halve greenhouse gas emissions across its value chain by 2030. Pandora is listed on the Nasdaq Copenhagen stock exchange and generated sales of DKK 23.4 billion (EUR 3.1 billion) in 2021.
Contact
For more information, please contact:
| Investor Relations John Bäckman VP, Investor Relations, Tax & Treasury +45 5356 6909 jobck@pandora.net Kristoffer Aas Malmgren Investor Relations Director +45 3050 1174 kram@pandora.net | Corporate Communications Johan Melchior Director External Relations +45 4060 1415 jome@pandora.net |
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