Note 18

The Group has a share-based incentive plan directed to the personnel of the Group. The aim of the option rights is to encourage employees for a long-term employment in order to increase the value of the company and to make employees committed to the company. With the sale of iLOQ Oy’s entire share capital executed in December 2019, all option-based incentive arrangements where options have been directed to the personnel, have expired. With the expiration of the arrangements, the cost effect of the incentive systems valid before the sale of the share capital have been recognized in full in 2019.

Option-based incentive plan 2018

In 2018, Annual General Meeting decided to issue a share option plan for the Board of Directors of the parent company. According to the conditions of the share option plan, the options were granted with no consideration to the members of the Board of Directors so that each individual member can receive a maximum of 500 options. The share option program is part of ensuring the commitment of the members of the Board of Directors and thus, there is a weighty financial reason from the company’s point of view. Option rights grant the right to subscribe for 40,000 of series K shares in total. The grantee of the option right is liable for all taxes and tax-related consequences that relate to the receiving or exercising of the option right.
The subscription period for the shares to be subscribed under the option rights is 1 January 2019 – 31 December 2020.
The subscription price of a share is EUR 60.

In 2018, the Board of Directors decided on the basis of the valid authorization to issue a share option plan for the Group’s key personnel. According to the conditions of the share option plan, the options are granted with no consideration to the Group’s key personnel decided by the Board of Directors. There is a weighty financial reason for the Group to grant the option rights, because the option rights are intended to be a part of the incentive and engagement system of the Group’s key personnel. The option rights grant the right to subscribe for 20,000 of the company’s series K shares in total. The grantee of the option right is liable for all taxes and tax-related consequences that relate to the receiving or exercising of the option right.
The subscription period for option rights is 1 May 2021 – 31 December 2026. The subscription price of a share is EUR 123.

Option-based incentive plan 2019

In 2019, Annual General Meeting decided to issue a share option plan for the Board of Directors of the parent company. According to the conditions of the share option plan, the options were granted with no consideration to the members of the Board of Directors so that each individual member can receive a maximum of 650 options. The share option program is part of ensuring the commitment of the members of the Board of Directors and thus, there is a weighty financial reason from the company’s point of view. The option rights grant the right to subscribe for 2,600 of the company’s series K shares in total. The grantee of the option right is liable for all taxes and tax-related consequences that relate to the receiving or exercising of the option right.

The subscription period for the shares to be subscribed under the option rights 2019 is 1 January 2020 – 31 December 2021.
The subscription price of a share is EUR 110.

Changes in outstanding share options during the financial year are presented in the table below.