Share-Based Incentive Initiative for TCM Group Executive Team
Overview of TCM Group A/S Incentive Program
TCM Group A/S is excited to announce a fresh share-based incentive program aimed at its executive management team. This program, known as the Performance Share Unit Program (PSU), is a continuation of the earlier initiative launched in 2021 and is now set to cover the years 2025 through 2027.
Objectives of the Program
The main goal of this program is to synchronize the interests of the executives with those of TCM Group A/S's shareholders. By doing so, it promotes the creation of long-term shareholder value while simultaneously committing the management to achieve the company's strategic goals and ensuring their retention.
Program Structure
The program operates with individual Performance Share Unit Plans commencing annually. Each plan features a three-year performance period. At the conclusion of this period, successful performance share units may be transformed into shares of TCM Group A/S without any cost to the executives. Each new plan’s activation relies on a specific decision made by TCM Group’s Board of Directors. To fulfill the obligations linked to the PSU, TCM Group intends to utilize treasury shares.
Eligibility and Awards
Eligible executives under this plan include the CEO, Torben Paulin, and CFO, Thomas Hjannung. The shares from the PSU will be granted in the first half of 2028, contingent upon achieving the set performance targets established by the Board.
Performance Measurement Standards
The performance metrics for the 2025-2027 PSU program include the absolute total shareholder return (TSR) of the company's shares, EBITDA, and CO2 reduction targets. These measures are in line with the principles applied in prior year plans designed for the years 2021-2023, 2022-2024, 2023-2025, and 2024-2026.
Reward Distribution and Eligibility
In total, up to 33,842 shares could be awarded to executives if they fully meet the performance benchmarks established for PSU 2025-2027, resulting in a total gross earning of approximately DKK 2.5 million based on the current valuation of the company's shares.
Cap on Rewards
It is important to highlight that there is a maximum cap on the reward, which is directly linked to the fluctuations in TCM Group A/S's share price.
Employment Status Impact
If any executive manager departs from the company before the share awards are made, they typically will not be entitled to any compensation based on the respective plan.
Share Ownership Requirements
Executives at TCM Group A/S are obliged to maintain a share ownership level equivalent to up to one year's base salary, in alignment with the company's remuneration policies.
About TCM Group
TCM Group stands as Scandinavia's third largest kitchen and bathroom furniture manufacturer. With a heritage of high quality and craftsmanship, the company produces items in Denmark. TCM Group implements a multi-brand strategy, featuring prominent brands such as Svane Køkkenet, along with Tvis Køkken, Nettoline, and AUBO. These brands effectively cover a wide price range and are sold through roughly 220 dealers across Denmark and Scandinavia. In addition, TCM Group sells private label kitchens through DIY outlets in Denmark and independent kitchen shops in Norway. The company also holds a 45% stake in the e-commerce kitchen firm Celebert, which offers brands like kitchn.dk and billigskabe.dk. Visit www.tcmgroup.dk for more insights into our offerings.
Frequently Asked Questions
What is the purpose of TCM Group A/S's incentive program?
The program aims to align the interests of the executive management with those of the shareholders, promoting long-term value creation.
How often do the Performance Share Unit Plans begin?
Individual Performance Share Unit Plans commence annually, each covering a three-year performance period.
What shares may be awarded through the program?
The program could potentially award up to 33,842 shares if all performance targets are met.
What are the performance metrics for the new program?
The performance measures include total shareholder return (TSR), EBITDA, and CO2 reductions based on prior years' principles.
Are there share ownership requirements for the executives?
Yes, executives must adhere to a share ownership requirement equivalent to one year's base salary as per the company's policy.
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