VEON's CEO Award: Insights into Conditional Incentives

Author: Owen Jenkins Updated: 09-12-2024 03:15 AM

VEON's CEO Receives Conditional Award

VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON) continues to make waves as a prominent global digital operator, offering a range of connectivity and online services. Recently, the company announced a notable development regarding its Group Chief Executive Officer, Kaan Terzioglu, who received a conditional incentive award recognized under the company's 2021 Long Term Incentive Plan (LTIP).

A Closer Look at the Award Details

Kaan Terzioglu was presented with the Conditional Award on January 10, 2024. This award consisted of 3,201,250 common shares in VEON Ltd, which were contingent upon the achievement of specific performance targets. Notably, these performance benchmarks were achieved, allowing for the vesting of the award on July 30, 2024. As per the stipulations in the original award agreement, the corresponding common shares were set to be transferred to Mr. Terzioglu within 30 days of this vesting date.

Settlement Terms and Structure

In light of the current lack of available securities registered under Form S-8, VEON and Mr. Terzioglu have mutually agreed to alter the terms of the Conditional Award. This alteration culminated in a structured settlement that comprises both cash and equity components. Here’s a breakdown of the settlement:

Cash Payment: Mr. Terzioglu received a gross cash payment of USD 500,000 in August 2024.
Equity Payment: A transfer of 2,729,000 common shares (equivalent to 109,160 ADSs) is scheduled to be completed by August 31, 2025. While Mr. Terzioglu is currently recognized as the beneficial owner of these shares as of September 10, 2024, he will not directly hold them until the transfer process in 2025 to align with applicable selling restrictions.

These agreed payments represent a full and final settlement of the Conditional Award after applicable tax liabilities and necessary deductions as specified by law.

Understanding VEON's Role in the Digital World

Established as a digital operator, VEON delivers a combination of connectivity and digital services to nearly 160 million customers globally. Spanning six countries, the company serves regions that collectively embody over 7% of the world’s population. VEON’s commitment lies in enhancing lives through technology-driven services that not only empower individuals but also stimulate overall economic growth.

VEON's Growth and Innovations

With its headquarters situated in Amsterdam, VEON prominently lists on both Nasdaq and Euronext. The company remains focused on expanding its digital footprint and offing innovative services that cater to the evolving needs of modern users. As VEON continues to adapt to the fast-paced digital landscape, initiatives like the Conditional Award highlight how the company rewards leadership that drives significant growth.

Frequently Asked Questions

What is the Conditional Award given to Kaan Terzioglu?

The Conditional Award represents an incentive granted for achieving specific performance targets, encompassing 3,201,250 common shares in VEON Ltd.

What are the terms of the settlement for the Conditional Award?

The settlement includes a gross cash payment of USD 500,000 and a future equity payment involving a transfer of common shares by mid-2025.

How does VEON support its customers?

VEON provides converged connectivity and digital services, reaching nearly 160 million customers across multiple countries.

When is the equity payment scheduled to be completed?

The transfer of equity is expected to occur by no later than August 31, 2025.

What is VEON's market presence?

VEON operates in six countries, serving regions that account for over 7% of the global population, reinforcing its position in the telecommunications sector.

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