TORM plc Long Term Incentive Program

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).

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

8 metrics

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

Market Reality Check

Price: $124.94 Vol: Volume 1,913,249 is below...

normal vol

$124.94 Last Close

Volume Volume 1,913,249 is below the 20-day average of 2,164,772 (relative volume 0.88). normal

Technical Shares trade below the 200-day MA at 129.64, with the last price at 124.94.

Peers on Argus

Sector peers show mixed moves: IDXX up 1.09%, while IQV, MTD, WAT, and LH are do...

Sector peers show mixed moves: IDXX up 1.09%, while IQV, MTD, WAT, and LH are down between 0.51% and 2.69%. No peers appeared in the momentum scanner, and sector momentum flags do not indicate a coordinated move.

Historical Context

5 past events · Latest: Feb 23 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 23	Conference participation	Neutral	+0.2%	Announcement of fireside chat at TD Cowen’s 46th Annual Health Care Conference.
Feb 11	Dividend declaration	Positive	-3.1%	Quarterly cash dividend of <b>$0.255</b> per share announced for April 22, 2026.
Feb 11	Sustainability award	Positive	-0.1%	Recognition of a partner with the 2025 Instrument Trade‑In Impact Award for waste reduction.
Feb 11	FDA approval	Positive	-0.1%	FDA approval expanding use of PD‑L1 IHC 22C3 pharmDx as a companion diagnostic in EOC.
Feb 04	Product showcase	Positive	+0.6%	Showcase of automated workflow and imaging solutions at SLAS2026 in Boston.

Pattern Detected

Recent history shows several instances where positive news (dividends, FDA approval, awards) was followed by flat to negative next-day moves, suggesting investors have not consistently rewarded good news in the short term.

Recent Company History

Over recent months, the company highlighted multiple developments, including participation in TD Cowen’s 46th Annual Health Care Conference and showcasing next‑generation automated solutions at SLAS2026. It also announced a quarterly dividend of $0.255 per share and received FDA approval for PD‑L1 IHC 22C3 pharmDx in additional cancer indications. Despite these constructive updates, next‑day price reactions often stayed muted or negative, indicating that investors may already have priced in some of these positives or focused on other factors.

Market Pulse Summary

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 Terms

restricted share units, volatility

2 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.

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.

AI-generated analysis. Not financial advice.

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.

This information was brought to you by Cision http://news.cision.com

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

The following files are available for download:

https://mb.cision.com/Main/21247/4313548/3955106.pdf

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

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.