The Board of Golar LNG authorized the issue of up to 2,500,000 share options to Directors and employees of the company and its subsidiaries under its existing share option scheme.
Of the 2,500,000 authorized options, 1,750,000 have been issued and the remaining 750,000 will be issued at the future discretion of the board. The 1.75 million issued options have a strike price of $58.50 per share which will be adjusted for each time the Company pays dividends. Fifty percent of recipients’ allotted options will vest on October 21, 2017 and the remaining fifty percent a year later. The option period is five years.
Commenting on the issue, Golar LNG’s CEO Doug Arnell said, “In order to execute successfully on the new FLNG strategy one of the key criteria will be to have access to and retain key personnel. During the next three years Golar will go through a major transformation which when successfully executed should create solid upside for the company’s shareholders.”
He further said that the new option plan including the minimum three year vesting period creates attractive incentives to current employees, and is also useful in order to secure further resources. The structure of the options where no vesting occurs until after the first FLNG unit is delivered secures full alignment with shareholders. The extended vesting period is further anticipated to create long term ties between the employees and the company and make it easier to keep valuable key personnel.
Press Release; Image: Golar LNG