Danish A.P. Møller – Mærsk A/S has decided to establish a restricted shares plan for the members of its Executive Board in addition to the stock option plan established in 2017.
Under the plan, Maersk wants to connect the board members’ compensation to the long-term interests of the shareholders and the company’s performance by linking a higher proportion of their annual pay to Maersk’s share price development.
In addition, the group believes the plan would help retain the board members within Maersk.
The group said its board of directors would decide on granting the shares on annual basis, normally on or around April 1.
“The restricted shares will be granted free of charge to the executive board member and upon vesting the member will receive one B share in A.P. Møller – Mærsk A/S of nominally DKK 1,000 for each vested restricted share. The restricted shares will vest five years after the main grant date in the year of the grant,” Maersk detailed in an announcement.
The theoretical market value of the restricted shares is based on the 5-day volume weighted average of Maersk’s B shares in the 5 trading days immediately following the publication of the annual report. In 2018, this value is DKK 10,476, the group said.
The value of the restricted share will not exceed 25 pct of the respective board member’s annual fixed base salary. Based on the theoretical market value, approximately 1,002 restricted shares in total are expected to be granted to the executive board members in 2018, Maersk added.
The plan is being launched on the back of Maersk group’s transformation from a conglomerate to an integrated global container logistics company, which is expected to take between three to five years
For the transformation to be completed, Maersk is yet to finalize the separation of its energy business, as structural solutions are still being sought for Maersk Drilling and Maersk Supply Service. Maersk believes that these will be defined before the end of 2018.