Norsk Hydro: Primary insiders have been allocated shares under the Long Term Incentive program
Norsk Hydro ASA has implemented a share-based Long-Term Incentive program for its corporate management, allowing a maximum remuneration of 30% of the annual base salary.
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Rhea-AI Summary
Norsk Hydro ASA has implemented a share-based Long-Term Incentive program for its corporate management, allowing a maximum remuneration of 30% of the annual base salary. The program relies on two performance metrics: Hydro's adjusted Return on Capital Employed (RoACE) and Total Shareholder Return (TSR) over three years. Eligibility for the payment is contingent on the company achieving a positive adjusted EBITDA in the prior year. Participants must invest their net remuneration in Hydro shares and hold them for at least three years. On March 10, 2023, various insiders received shares under this program, with a total of 77,841 shares allocated at a price of NOK 77.24 each.
Positive
- Establishment of a performance-driven Long-Term Incentive program to motivate management.
- Alignment of management interests with shareholder value through shareholding requirements.
- Positive EBITDA requirement could lead to a focus on profitability.
Negative
- The program's dependence on short-term performance metrics may not ensure long-term stability.
- Potential for dilution of shares due to the issuance of new shares for the incentive program.
Details
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AI-generated analysis. How Rhea-AI works. Not financial advice.
Norsk Hydro ASA has a share-based Long-Term Incentive program ("LTI") in the form of a maximum remuneration of 30 percent of the annual base salary, dependent on two equally weighted performance metrics for the President and CEO and the other members of the Corporate Management Board. The two performance measures are 1) Hydro's three-year average adjusted RoaCE relative to Hydro's adjusted RoaCE target and 2) Hydro's 3-year Total Shareholder Return (TSR) relative to a basket of peers.
The LTI payment is conditional on Hydro having a positive adjusted EBITDA in the previous year. The participants will be required to invest the net amount after tax in Hydro shares, and they must hold the shares for at least three years.
The list below set out the primary insiders that on March 10, 2023, have been allocated Hydro shares under the LTI plan at NOK 77.24 per share.
| Name | Position | Allocated shares LTI program | New holding |
| Hilde Merete Aasheim | President & CEO | 15 101 | 140 904 |
| Arvid Moss | EVP, Hydro Energy | 7 567 | 183 969 |
| Eivind Kallevik | EVP, Hydro Aluminium Metal | 8 483 | 84 994 |
| Anne-Lene Midseim | EVP, Legal and Compliance | 6 139 | 42 419 |
| John Thuestad | EVP, Hydro Bauxite & Alumina | 12 314 | 30 423 |
| Hilde Vestheim Nordh | EVP, People & HSE | 5 670 | 10 370 |
| Pål Kildemo | EVP and Chief Financial Office | 7 641 | 24 084 |
| Paul Warton | EVP, Hydro Extrusions | 12 593 | 16 431 |
| Therese Rød Holm | EVP, Communication & Public Affairs | 1 277 | 1 277 |
| Trond O. Christophersen | EVP, Corporate Development | 1 056 | 5 384 |
| Total | 77 841 | 540 255 |
Investor contact:
Line Haugetraa
+47 41406376
Line.Haugetraa@hydro.com
Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
Attachments
- KRT-1500 - Anne-Lene Midseim
- KRT-1500 - Arvid Moss
- KRT-1500 - Eivind Kallevik
- KRT-1500 - Hilde Merete Aasheim
- KRT-1500 - Hilde Vestheim Nordh
- KRT-1500 - John Gabriel Thuestad
- KRT-1500 - Pal Kildemo
- KRT-1500 - Paul Warton
- KRT-1500 - Therese Rod Holm
- KRT-1500 - Trond Olaf Christophersen
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