Incentive programs

LTIP 2024

The Annual General Meeting on 7 May 2024 decided on a resolution regarding a new long-term incentive programme with a vesting period running from 2024 to 2026. The offer is aimed at senior executives and other key personnel in the Bravida Group.

In order to participate in LTIP 2024, the participant must make a private investment by acquiring Saving Shares at market value for a value of not less than SEK 37,500 and up to SEK 375,000. Each participant is entitled to a maximum of five (5) Performance Shares for each Saving Share and the number of Performance Shares each participant is entitled to depends on (i) which category each participant belongs to, see below, and (ii) the Company’s fulfilment of the performance conditions. Performance condition The number of Performance Shares each of the participant’s Saving Share entitles to depends on how the Company has fulfilled the performance condition during the measurement period. The measurement period is three years and covers the financial years 2024, 2025 and 2026 (the “Measurement period”). The performance condition is based on the company’s normalised accumulated EBITA (“Group EBITA”). EBITA is the result before interest, and amortisations, also called operating profit.

In order for the participants to obtain full allotment of the number of Performance Shares in accordance with LTIP 2024, the Group EBITA must amount to at least MSEK 2 144 (the “Target level”). At the end of the Measurement period, i.e. on 31 December 2026, the Company’s Group EBITA for the financial year 2026 will be compared to the Target level.

Should the Group EBITA for the financial year 2026 amount to at least MSEK 2 144, the participants will be entitled to full allotment of the number of Performance Shares. The allocation of Performance Shares requires that the minimum level is reached. The minimum level for LTIP 2024 amounts to 85 percent of the Target level.  If the minimum level is not reached no Performance Shares will be allotted. The board of directors intends to disclose the fulfilment of the performance-based condition of LTIP 2024 in the annual report for the financial year 2026.

The CEO may participate with Bravida shares corresponding to a value of SEK 375,000 at the starting point. The CFO may participate with Bravida shares corresponding to a maximum value of SEK 300,000. Other members of the Group management may participate with Bravida shares corresponding to a maximum value of SEK 250,000. Regional Managers, certain Branch Managers and selected key personnel may participate with Bravida shares corresponding to a maximum value of SEK 62,500. In addition, certain key personnel may participate with shares corresponding to a maximum of SEK 37,500.

 

If the maximum result is reached, and all invested Saving Shares are retained under LTIP 2024 and a fulfilment of the performance conditions of 100 per cent, the maximum cost of LTIP 2024 as defined in IFRS 2 is approximately MSEK 70 and the maximum social security cost is estimated to approximately MSEK 17.

LTIP 2023

The Annual General Meeting on 28 April 2023 decided on a resolution regarding a new long-term incentive programme with a vesting period running from 2023 to 2025. The offer is aimed at senior executives and other key personnel in the Bravida Group.

Participation in LTIP 2023 requires participants to own a certain number of shares in Bravida throughout the term of the programme and requires that they are employed by Bravida during the entire period. For each share (Bravida share) held by participants under LTIP 2023, the company will allocate, at no cost, a maximum of three (3) or five (5) new shares in Bravida.

The number of shares allocated depends on the extent to which the defined performance target is met. The defined performance target is that the 2025 result (EBITA) of the Group shall amount to SEK 1,965 million to achieve full allocation. For any shares to be allocated at all, a minimum level must be exceeded. This minimum level is set at 85 percent of the target figure of SEK 1,965 million. All participants have the same performance targets. Any allocation takes place after the first interim report for 2026 has been published.

The CEO may participate with Bravida shares corresponding to a value of SEK 375,000 at the starting point. The CFO may participate with Bravida shares corresponding to a maximum value of SEK 300,000. Other members of the Group management may participate with Bravida shares corresponding to a maximum value of SEK 250,000. Regional Managers, certain Branch Managers and selected key personnel may participate with Bravida shares corresponding to a maximum value of SEK 62,500. In addition, certain key personnel may participate with shares corresponding to a maximum of SEK 37,500.

If the maximum outcome is achieved, and that all invested Bravida shares are retained in accordance with LTIP 2023 and the performance-based conditions are fulfilled to 100 percent, the cost for LTIP 2023 will amount to a maximum of approximately SEK 70 million in accordance with IFRS 2 and the cost for social security contributions to approximately SEK 19 million.

LTIP 2022

The Annual General Meeting on 5 May 2022 passed a resolution regarding a new long-term incentive programme with a vesting period running from 2022 to 2024

The offer is aimed at senior executives and other key personnel in the Bravida Group. Participation in LTIP 2022 requires participants to own a certain number of shares in Bravida throughout the term of the programme and requires that they are employed by Bravida for the etire period. For each share (Bravida share) held by participants under LTIP 2022, the Company will allocate, at no cost, a maximum of three (3) or five (5) new shares in Bravida to the participants. The number of shares allocated depends on the extent to which the defined performance target is met. The defined performance target is that the 2024 earnings (EBITA) of the Group are at least SEK 1,855,480,000 to achieve full allocation. For any shares to be allocated at all, a minimum level must be exceeded. This minimum level is set at 85 percent of the target figure of SEK 1,855,480,000. All participants have the same performance targets. Any allocation takes place after the first interim report for 2025 has been published.

The CEO may participate with Bravida shares corresponding to a value of SEK 300,000 at the starting point, the CFO may participate with Bravida shares corresponding to a maximum value of SEK 240,000, other members of the Group management may participate with Bravida shares corresponding to a maximum value of SEK 200,000, regional managers may participate with Bravida shares corresponding to a maximum value of SEK 50,000, branch managers whose branches on average during the last three years have earned more than 7 percent Group-EBITA and had sales of more than SEK 50 million may participate with Bravida shares corresponding to a value of SEK 50,000, branch managers whose branches on average during the last three years have earned more than 4 percent Group-EBITA (but less than 7 percent) and had sales of more than SEK 30 million (but less than SEK 50 million) may participate with Bravida shares corresponding to a value of SEK 30,000. In addition, certain other executives at the Group, divisional or regional level and certain key employees may participate with Bravida shares corresponding to either a maximum value of SEK 30,000 or a maximum value of SEK 50,000.

If the maximum outcome is achieved, and all invested Bravida shares are retained in accordance with LTIP 2022 and the performance-based conditions are fulfilled to 100 percent, the maximum cost for LTIP 2022 will amount to approximately SEK 46 million in accordance with IFRS 2 and the cost for social security contributions will amount to approximately SEK 10 million.