TORM plc Long Term Incentive Program

TORM plc (Nasdaq: A) has adopted a long-term incentive program granting Restricted Share Units (RSUs) to employees and Executive Director Jacob Meldgaard.

Rhea-AI Summary

TORM plc (Nasdaq: A) has adopted a long-term incentive program granting Restricted Share Units (RSUs) to employees and Executive Director Jacob Meldgaard. For 2025, 1,356,087 RSUs will be granted and 255,200 RSUs to Jacob Meldgaard, vesting over three years from 01 January 2027.

Each RSU may be exercised for one TORM A-share at an exercise price of DKK 167.14; theoretical market value of the allocation is USD 10.9m. P&L impact is forecast at USD 6.2m (2026), 3.3m (2027) and 1.4m (2028).

Market Context

This announcement outlines a sizeable RSU-based long‑term incentive plan, with 1,356,087 units for p...

Analysis

This announcement outlines a sizeable RSU-based long‑term incentive plan, with 1,356,087 units for participants and 255,200 for the Executive Director, struck at DKK 167.14 per share and valued at USD 10.9m. The program vests over three years and is expected to impact the P&L from 2026 to 2028. Investors may watch future proxy materials, compensation trends, and actual share issuance to assess governance, dilution, and alignment with performance.

Key Figures

Total RSUs granted: 1,356,087 RSUs Executive Director RSUs: 255,200 RSUs Exercise price: DKK 167.14 per A-share +5 more

Total RSUs granted

1,356,087 RSUs

2025 long-term incentive grants to participants

Executive Director RSUs

255,200 RSUs

Grant to Executive Director Jacob Meldgaard

Exercise price

DKK 167.14 per A-share

Strike price for RSUs, 90-day average plus 15% premium

RSU market value

USD 10.9m

Theoretical value based on Black-Scholes model

P&L impact 2026

USD 6.2m

Expected RSU-related expense in 2026

P&L impact 2027

USD 3.3m

Expected RSU-related expense in 2027

P&L impact 2028

USD 1.4m

Expected RSU-related expense in 2028

Allocation share price

DKK 174.35 per A-share

Share price at time of RSU allocation

Historical Context

5 past events · Latest: Feb 23

5 events

1. Feb 23

   Conference participation

   24h Move

   +0.2%

   Announcement of fireside chat at TD Cowen’s 46th Annual Health Care Conference.

2. Feb 11

   Dividend declaration

   24h Move

   -3.1%

   Quarterly cash dividend of $0.255 per share announced for April 22, 2026.

3. Feb 11

   Sustainability award

   24h Move

   -0.1%

   Recognition of a partner with the 2025 Instrument Trade‑In Impact Award for waste reduction.

4. Feb 11

   FDA approval

   24h Move

   -0.1%

   FDA approval expanding use of PD‑L1 IHC 22C3 pharmDx as a companion diagnostic in EOC.

5. Feb 04

   Product showcase

   24h Move

   +0.6%

   Showcase of automated workflow and imaging solutions at SLAS2026 in Boston.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

restricted share units, black-scholes model, volatility, risk-free interest rate, +1 more

5 terms

restricted share units financial

"decided to grant certain employees (the "Participants") Restricted Share Units"

Restricted share units (RSUs) are a promise from a company to give an employee or service provider actual shares or cash equal to the shares after certain conditions are met, typically staying with the company for a set time or hitting performance targets. Think of them like a time-locked gift card that becomes usable only after you’ve earned it. For investors, RSUs matter because they align employee incentives with company performance and can increase the number of shares outstanding over time, diluting existing ownership and affecting earnings per share.

black-scholes model financial

"market value of the RSU allocation is calculated at USD 10.9m based on the Black-Scholes model."

A mathematical formula used to estimate the fair price of options — contracts that give the right to buy or sell a stock at a set price. It combines current stock price, time until the option expires, expected price swings, interest rates and expected dividends to produce a single value, much like using a recipe to predict how a cake will turn out given ingredients and baking time. Investors use it to judge whether options are overpriced or underpriced and to help manage risk and trading strategies.

View in glossary

volatility financial

"The volatility of the TORM share is estimated at 40%."

Volatility measures how much the price of an investment changes over time, similar to how a roller coaster’s height varies during the ride. High volatility means prices can swing dramatically in a short period, while low volatility indicates more stable, predictable movements. It matters to investors because it affects the potential risks and rewards of their investments, influencing decisions about when to buy or sell.

View in glossary

risk-free interest rate financial

"The risk-free interest rate based upon expiry of the RSUs is based on Danish government bonds"

The risk-free interest rate is the theoretical return an investor would earn on an investment with no chance of losing principal or missing payments, used as the baseline for valuing and comparing all other investments. Think of it as the “floor” return — like a perfectly safe savings holding — that investors use to judge whether higher-yielding assets compensate adequately for extra risk; it affects pricing, discounting future cash flows and measuring risk premiums.

p&l statement financial

"The RSU allocation is expected to affect the P&L statement as follows:"

A P&L statement (profit and loss statement) is a financial report that shows a company’s revenues, costs and resulting profit or loss over a specific period. Think of it like a household budget that lists money coming in, bills and day-to-day spending, and what’s left over or short; investors use it to judge whether a business is making money, controlling costs, and improving or worsening over time, which affects valuation and investment decisions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HELLERUP, Denmark, Feb. 26, 2026 /PRNewswire/ -- In accordance with TORM plc's (Nasdaq: TRMD) (Nasdaq: TRMD A) Remuneration Policy adopted by the Annual General Meeting of TORM plc on 14 April 2021, the Board of Directors has as part of a long-term incentive program decided to grant certain employees (the "Participants") Restricted Share Units ("RSUs") in the form of restricted stock options. The RSUs aim at incentivizing the Participants to seek to improve the performance of TORM and thereby the TORM share price for the mutual benefit of themselves and the shareholders of TORM.

For 2025, the Participants will be granted a total of 1,356,087 RSUs and, subject to vesting, each RSU will entitle the holder to acquire one TORM A-share. The RSUs will vest over a three-year period, with one third of the grant amount vesting at each anniversary during the three-year period starting on 01 January 2027. The exercise price for each TORM A-share is DKK 167.14, corresponding to the average of 90 calendar days preceding the publication of TORM plc's 2025 Annual Report plus a 15% premium. Vested RSUs may be exercised for a period of 360 days from each vesting date.

In addition to the RSUs granted to the Participants, Executive Director Jacob Meldgaard will be granted a total of 255,200 RSUs on similar terms as outlined above.

Holders of the RSUs will have no rights as a shareholder with respect to such RSUs until such time as the RSUs vest, are exercised and TORM A-shares are issued. The RSUs include certain adjustment and acceleration provisions, exercise conditions and other terms customary for restricted stock option programs of this nature.

The theoretical market value of the RSU allocation is calculated at USD 10.9m based on the Black-Scholes model. The key assumptions for the calculation of the market value are:

• The strike price is adjusted for future TORM dividends.
• The volatility of the TORM share is estimated at 40%.
• The risk-free interest rate based upon expiry of the RSUs is based on Danish government bonds with maturity corresponding to the maturity of the individual RSUs. The interest rate is between 1.78% - 2.01% depending on maturity.
• A share price of DKK 174.35 per A-share at the time of allocation.

The RSU allocation is expected to affect the P&L statement as follows:

USDm	2026	2027	2028	Total
Effect	6.2	3.3	1.4	10.9

Contact

Mikael Bo Larsen, Head of Investor Relations
Tel.: +45 5143 8002

About TORM

TORM is one of the world's leading carriers of refined oil products. TORM operates a fleet of product tanker vessels with a strong commitment to safety. environmental responsibility and customer service. TORM was founded in 1889 and conducts business worldwide. TORM's shares are listed on Nasdaq in Copenhagen and on Nasdaq in New York (ticker: TRMD A and TRMD. ISIN: GB00BZ3CNK81). For further information, please visit www.torm.com.

Safe Harbor Statement as to the Future

Matters discussed in this release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are statements other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. Words such as, but not limited to, "expects," "anticipates," "intends," "plans," "believes," "estimates," "targets," "projects," "forecasts," "potential," "continue," "possible," "likely," "may," "could," "should" and similar expressions or phrases may identify forward-looking statements.

The forward-looking statements in this release are based upon various assumptions, many of which are, in turn, based upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond our control, the Company cannot guarantee that it will achieve or accomplish these expectations, beliefs, or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, our future operating or financial results; changes in governmental rules and regulations or actions taken by regulatory authorities; inflationary pressure and central bank policies intended to combat overall inflation and rising interest rates and foreign exchange rates; general domestic and international political conditions or events, including "trade wars" and the war between Russia and Ukraine, the developments in the Middle East, including the war in Israel and the Gaza Strip, and the conflict regarding the Houthis' attacks in the Red Sea; international sanctions against Russian oil and oil products; changes in economic and competitive conditions affecting our business, including market fluctuations in charter rates and charterers' abilities to perform under existing time charters; changes in the supply and demand for vessels comparable to ours and the number of newbuildings under construction; the highly cyclical nature of the industry that we operate in; the loss of a large customer or significant business relationship; changes in worldwide oil production and consumption and storage; risks associated with any future vessel construction; our expectations regarding the availability of vessel acquisitions and our ability to complete acquisition transactions planned; availability of skilled crew members other employees and the related labor costs; work stoppages or other labor disruptions by our employees or the employees of other companies in related industries;  effects of new products and new technology in our industry;  new environmental regulations and restrictions; the impact of an interruption in or failure of our information technology and communications systems, including the impact of cyber-attacks, upon our ability to operate; potential conflicts of interest involving members of our Board of Directors and Senior Management; the failure of counterparties to fully perform their contracts with us; changes in credit risk with respect to our counterparties on contracts; adequacy of insurance coverage; our ability to obtain indemnities from customers; changes in laws, treaties or regulations; our incorporation under the laws of England and Wales and the different rights to relief that may be available compared to other countries, including the United States; government requisition of our vessels during a period of war or emergency; the arrest of our vessels by maritime claimants; any further changes in U.S. trade policy that could trigger retaliatory actions by the affected countries; the impact of the U.S. presidential and congressional election results affecting the economy, future government laws and regulations and trade policy matters, such as the imposition of tariffs and other import restrictions; potential disruption of shipping routes due to accidents, climate-related incidents, adverse weather and natural disasters, environmental factors, political events, public health threats, acts by terrorists or acts of piracy on ocean-going vessels; damage to storage and receiving facilities; potential liability from future litigation and potential costs due to environmental damage and vessel collisions; and the length and number of off-hire periods and dependence on third-party managers.

In the light of these risks and uncertainties, undue reliance should not be placed on forward-looking statements contained in this release because they are statements about events that are not certain to occur as described or at all. These forward-looking statements are not guarantees of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.

Except to the extent required by applicable law or regulation, the Company undertakes no obligation to release publicly any revisions or updates to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Please see TORM's filings with the U.S. Securities and Exchange Commission for a more complete discussion of certain of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

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https://news.cision.com/torm-plc/r/torm-plc-long-term-incentive-program,c4313548

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03-2026 TORM plc Long Term Incentive Program

View original content:https://www.prnewswire.com/news-releases/torm-plc-long-term-incentive-program-302698595.html

SOURCE Torm PLC

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How many RSUs did TORM (Nasdaq: A) grant under the 2025 long-term incentive program?

TORM granted 1,356,087 RSUs for 2025 to eligible employees. According to the company, an additional 255,200 RSUs were granted to Executive Director Jacob Meldgaard under similar terms.

What is the exercise price and vesting schedule for TORM (Nasdaq: A) RSUs?

The exercise price is DKK 167.14 and RSUs vest over three years. According to the company, one third vests each anniversary starting on 01 January 2027, with a 360-day exercise window after each vesting.

What is the reported accounting impact of TORM's (Nasdaq: A) RSU allocation on P&L?

The RSU allocation is expected to affect P&L by USD 10.9m in total. According to the company, the annual effect is USD 6.2m in 2026, 3.3m in 2027 and 1.4m in 2028.

How was the theoretical market value of TORM's (Nasdaq: A) RSUs calculated?

Theoretical market value is USD 10.9m based on Black-Scholes valuation. According to the company, assumptions include 40% volatility, Danish government bond rates (1.78%–2.01%) and a share price of DKK 174.35.

Will holders of TORM (Nasdaq: A) RSUs have shareholder rights before vesting?

No, RSU holders have no shareholder rights until vesting and exercise occur. According to the company, shares are only issued after RSUs vest, are exercised and TORM A-shares are issued.