Flex LNG - Announces Long-term Incentive Plan

Rhea-AI Summary

Flex LNG (NYSE:FLNG) has announced the approval of a long-term incentive plan (LTIP) granting up to 187,142 synthetic options to management and employees. The options have a five-year term expiring June 24, 2030, with a three-year vesting period starting June 24, 2026. The exercise price is set at $23.75, subject to adjustment for dividend distributions.

The synthetic options for the CEO and CFO include a cap on maximum annual gain equal to two times their annual base salary at exercise. The options will be cash-settled based on the difference between market price and exercise price at exercise date.

Positive

• Implementation of long-term incentive plan aligns management interests with shareholders
• Three-year vesting period promotes long-term retention of key employees
• Cap on CEO and CFO gains demonstrates responsible compensation governance

Negative

• Cash settlement of options may impact company's cash reserves
• Potential dilution of shareholder value through synthetic option issuance

News Market Reaction

-0.71%

1 alert

-0.71% News Effect

On the day this news was published, FLNG declined 0.71%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

HAMILTON, Bermuda, June 24, 2025 /PRNewswire/ -- The Board of Directors of Flex LNG Ltd ("Flex LNG" or the "Company") has approved a long-term incentive plan (the "LTIP") and hereby announces that up to 187,142 synthetic options have today been granted to management and employees of the Company. The synthetic options will have a five-year term expiring June 24, 2030, and will vest over a three-year vesting period as follows:

* 1/3 of the synthetic options will vest on June 24, 2026

* 1/3 of the synthetic options will vest on June 24, 2027

* 1/3 of the synthetic options will vest on June 24, 2028

The exercise price of the synthetic options is USD 23.75. The exercise price will further be adjusted for any distribution of dividends made before the relevant synthetic options are exercised.

The synthetic options granted to the CEO and the CFO are subject to a cap on maximum annual gain equal to two times the annual base salary at the time of exercise of the synthetic options. The synthetic options will be settled in cash based on the difference between the market price of the Company's shares and the exercise price on the date of exercise. The synthetic options have been granted according to the rules of the Company's synthetic option scheme approved by the Board of Directors of the Company.

Please see the attached forms of notification of transactions by primary insiders for the granting of the synthetic options.

This information is subject to the disclosure requirements pursuant to article 19 of Regulation EU 596/2014 (MAR) and section 5-12 of the Norwegian Securities Trading Act.

 

The Board of Directors
Flex LNG Ltd
 

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

https://news.cision.com/flex-lng/r/flex-lng---announces-long-term-incentive-plan,c4168212

The following files are available for download:

https://mb.cision.com/Main/22886/4168212/3521393.pdf

PDMR transactions

FAQ

How many synthetic options did Flex LNG (FLNG) grant in its 2025 LTIP?

Flex LNG granted up to 187,142 synthetic options to management and employees.

What is the exercise price for Flex LNG's 2025 LTIP options?

The exercise price is set at $23.75, subject to adjustment for any dividend distributions before exercise.

When do Flex LNG's 2025 LTIP options vest?

The options vest over three years: 1/3 each on June 24, 2026, 2027, and 2028.

What are the compensation limits for Flex LNG's CEO and CFO under the 2025 LTIP?

The CEO and CFO's maximum annual gain is capped at two times their annual base salary at the time of exercise.

When do Flex LNG's 2025 LTIP options expire?

The synthetic options have a five-year term, expiring on June 24, 2030.