The Group operates a number of share-based payment schemes.
All Employee Share Plan (AESP)
At the end of 2020, Kindred Group’s Board approved a new all employee share plan linked to the three-year strategic cycle of the business. The scheme is aimed at all permanent employees of the Group, with the exception of the Executive Management team. Grants have been made to all eligible employees on an annual basis in the financial years 2021 to 2023, each of which will vest after a 24-month period. The first initial grant was made on 1 March 2021 (with awards vesting in March 2023); a second grant was made on 1 March 2022 (with awards vesting in March 2024) and the final grant of this scheme was made on 1 April 2023 (with awards scheduled to vest in April 2025). All awards are subject to the achievement of Group EBITDA targets and continued employment.
Performance Share Plan (PSP)
Kindred have a Performance Share Plan (PSP) for senior leaders and other key employees. This is long term incentive plan with grants made annually on a discretionary basis, and awards scheduled to vest after 3 years. A new 5 year mandate to operate Kindred’s Performance Share Plan was approved at the 2023 AGM.
The PSP is designed to drive long-term value creation as well as ensure the retention of key contributors for the Group. Performance measures are non-market-based conditions providing participants with a high degree of alignment to the Group’s performance. Awards are subject to continued employment and achieving financial targets over three years. Grants made in each year have targets measured on an aggregate basis between the full year of grant and the two successive years so that performance in each financial year will be important. Aggregated performance against the targets and the resulting allocation of PSP awards are disclosed after the full year of vesting.
Stock Options Plan (SOP)
In addition to the Performance Share Plan, Kindred also have a stock options plan which is aimed for members of the Executive Management team. The scheme was introduced in 2022 following approval at 2022’s AGM and provides for an annual grant of options for executives from 2022 through to 2024. Options vest after a 3 year maturity cycle and can be exercised within a 6 month subsequent period. For participants in Sweden, warrants have been used, the cost of which Kindred pay a subsidy towards.
Dilution effects
Accumulated annual grants across any employee share or option program will not exceed 1% of the total outstanding shares, and concurrent grants will not exceed 5% of the total outstanding shares.
