Executive Management’s stock option program for the period 2007–2010 has come to an end. Stock options under this program were granted in three out of the four years; the expectation of not reaching DKK 10 billion in sales in 2010 did not allow for the granting of options in 2010. The Board of Directors will propose new guidelines for incentive-based remuneration for Executive Management, which will be announced together with the notice convening the Annual Shareholders’ Meeting, where approval for the guidelines will be sought. Subject to the approval of the new guidelines, after the Annual Shareholders’ Meeting Novozymes will announce a new incentive program for Executive Management based on the principles contained in the guidelines.
Novozymes has established a three-year restricted stock-based incentive program for vice presidents and directors covering the period 2011–2013, with restricted stock offered each year. Management shall approve the allocations made each year.
The restricted stock-based program is based on fulfillment of specified financial and nonfinancial targets. The total allocation of restricted shares is calculated on the basis of fulfillment of the following targets:
The release of the restricted stock is subject to continued employment at the end of the binding period. The restricted stock is free of charge to employees.
The number of restricted shares in the program is determined each year. The restricted shares have a qualifying period of one year and a binding period of three years.
The value of the program for 2011 could total up to approximately DKK 30 million. The stock-based program will be accrued and expensed over four years, and the amount recognized for 2011 is approximately DKK 8 million.
No significant events have occurred after December 31, 2010.